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The response set out in "inflation letter" this month is the same as in earlier this year.

MPC maintains official bank at historically low 0 5pc - interest rates policy put in place at the head off the coast of the recession and deflation, more than 18 months ago.If nothing has changed in the UK economy as successive letters had been written, which would logique.Mais much has changed, stressing the need for a shift towards the high interest rate.

First of all, the global economy has rebounded strongly - with the IMF project almost 5MC global growth this year in their forecasts for 3pc, autour there an an.Asie and other emerging market economies have provided lots of momentum.

But Germany - our second - most large national export - market also recorded the strongest growth and low unemployment has close to two decades.

Secondly, the British economy is returning to the stronger than expected growth.UK GDP increased by 2 8pc last year — advance the pace of recovery in the early stages of the two previous recoveries.

Employment has increased by approximately 350,000 since the beginning of 2010.And manufacturing industry has recorded the highest growth since 1994, supported by strong world growth and a competitive exchange rate.

Thirdly, the inflation Outlook changed considérablement.Cette times last year, the PPC should less than target inflation in the second half of 2010 and remain under target until the end of 2012.

Inflation significantly exceeded the previous forecasts, even taking into account the tax changes announced in the budget this year.Forecast inflation of the Bank have consistently underestimated movement shorterterm impact of the global increase in energy prices and raw and consistently overestimated the pressure on inflation, declining capacity reserve in the British economy.If we learn these mistakes of the past, we are likely to repeat them.

Low wage growth is often cited as a pressure downward inflation which is expected to offset rising import .but, price pressures that increases in earnings in the private sector was mastered in the recession, they are now pick up yet - supported by recovery and high headline inflation.

Already inflation remains above target, the more worried that we should he will push wage increases and inflation more generally expectations.

There are clearly some uncertainty about economic growth and international economy and the gouvernement.Cependant deficit reduction program future inflation it would be not concerned about declining due to the crisis risks financière.Notre experience in recovery is now the growth and inflation were higher prévu.Et the pace of the increase in interest rates can be adjusted changing economic circumstances.

The official discount rate has now been kept unchanged during the longest since 1939 - 1951 .and it is maintained at an exceptionally low level.

If we continue this policy in the evidence to the contrary on growth and inflation, I see a growing risk of two results désagréables.Taux interest may need to increase much more pronounced in the future, creating a severe twitch with confidence and recovery.

Or a more disturbing, commitment to the Bank of England inflation target is seriously questioned by financial markets, businesses and the public and loses credibility.

The longest it has no reply CPC to relatively high inflation in an economy recovery, become more these risques.Il now is the time for monetary policy to the United Kingdom to return to the business and interest rates to rise gradually to more normal levels.

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