Interest rates must rise after a Brexit deal is agreed to stop the economy from overheating, the Bank of England has said.
Economists said that the Bank would already be pressing ahead with rate increases were it not for political uncertainty. Its latest forecasts showed that the economy was growing too fast, an echo of the boom-bust cycle of the past.
If a customs agreement is agreed between the Conservatives and Labour, and then cleared by the EU, short-term growth would be even faster, Mark Carney, the Bank’s governor, said.
