The U.K. is "a little bit" better-placed to cope with an interest rate rise, and rates may need to increase by more than market expectations in the future, according to Bank of England Deputy Governor Ben Broadbent.
Speaking to BBC News, Broadbent, who sits on the central bank's rate-setting monetary policy committee, pointed to weakness in sterling following the Brexit vote in 2016 as fueling inflation.
The central bank held on to a 0.25% key interest rate and left its quantitative easing program unchanged during its Aug. 2 monetary policy meeting. Broadbent moved to allay concerns about future changes.
"One shouldn't overdo this. If and when it happens there will be a lot of talk about the first rate rise since 'X.' But it's just a rate rise and we got perfectly used to rate rises of this size in the past," he said.
Broadbent said the bank was concerned about uncertainty related to the country's exit from the EU which appear to be crimping new investment. He also said he understood consumer concerns around rising prices and wages that are failing to keep pace.