Andrew Sentance, a member of the Bank of England’s Monetary Policy Committee (MPC), has made a strong suggestion that interest rates could soon rise.

In an interview with the Guardian today (January 13th), he said that it would be wrong to assume interest rates will stay at their historically low level of 0.5 per cent.

The key driver behind the potential need to raise interest rates is the risk of inflation, Mr Sentence suggested.

Commenting on the Bank of England’s £200 billion quantitative easing package, designed to kick start the UK economy, he told the news provider: "At some point you have to say we have increased the amount of stimulus enough."

Banks and firms in the financial services sector have benefited from low interest rates, being able to borrow money cheaply to generate large profits.

A rise in interest rates could lead to finance graduate schemes drying up if the profit margins of banks are damaged.

This week, another member of the MPC, Adam Posen, suggested that the government should do more to inject competition into the banking sector.

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