Rate-setter warns of persistent inflation Michael Saunders, a member of the Bank of England’s rate-setting monetary policy committee, has echoed concerns recently raised by Andy Haldane, the Bank’s former chief economist, that inflation may be around for longer than expected. Saunders was among three members who called last week for a 0.5% rise in the bank rate – but the majority opted for a 0.25 percentage point hike to take the rate to a 13-year high of 1%. During a speech at the Resolution Foundation think-tank, Saunders said it would be better to ramp up borrowing costs more aggressively now to stop “the recent trend of higher inflation expectations and rising pay growth from becoming more firmly embedded.” Mr Haldane has predicted that inflation could top 10% and argued that the Bank should have acted sooner rather than waiting until November before raising interest rates.