Bank of England policy commissioner Megan Greene said that the UK should raise interest rates to counter the risk of a significant second round of inflation brought about by high energy prices. Greene said in a statement on Thursday that there is growing evidence that the idle production capacity of the British economy may have peaked, and quoted GDP data that exceeded expectations released earlier that day. She added that this means that the current level of interest rates is no longer austerity. Greene is attending the annual meetings of the International Monetary Fund and the World Bank in Bangkok. At an event, she said, “It is actually quite likely that the effects of the second round of inflation will appear quietly. We should take the initiative to prevent the risk of a second round of inflation.”

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