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BoE's Sentance says time's right to raise rates

Published 10/22/2010, 01:58 AM
Updated 10/22/2010, 02:00 AM

LONDON, Oct 21 (Reuters) - The Bank of England should start to raise interest rates from the record low of 0.5 percent to reflect better economic conditions in Britain and globally, BoE policymaker Andrew Sentance said in a BBC interview on Friday.

"What I am in favour of is a gradual rise in interest rates which will not destabilise the recovery and will not disrupt business and consumer confidence," he told BBC Radio WM, a regional radio station in central England.

"The global economy has turned round and the UK economy has grown by round about 2.5 percent over the last year. So those are all the conditions where we don't need so much stimulus from monetary policy, such a low level of interest rates."

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