The deputy governor for banking and markets was speaking yesterday after the Bank released figures showing 2.5 per cent inflation in June, the Financial Times said.
“Based on the rapid pace of developments since we published our May forecasts and the shift in the balance of risks, I can envisage those conditions for considering tightening being met somewhat sooner than I expected,” Ramsden said.
The previous view was that monetary policy would not tighten until at least 2023.
UK inflation has risen partly owing to an uplift in demand as Covid-19 restrictions loosen, and because of supply chain issues and energy price increases.
The figure of 2.5 per cent according to the consumer prices index was higher in June than at any time since August 2018.
Raising rates risks stifling the economic recovery, but a failure to do so incrementally could result in steeper hikes later if inflation continues.
Inflation has also been rising around the world and in the US hit 5.4 per cent in June.
Experts suggested UK inflation could go as high at four per cent by the end of this year.