LONDON, April 21 Bank of England policymaker
Michael Saunders said on Friday raising interest rates too late
had similar costs to moving too early, distancing himself from
colleagues who have previously stressed greater risks from a
premature rate hike.
Saunders, speaking at a meeting of the Federation of Small
Businesses in London, had said earlier that growth and inflation
were likely to be higher than the BoE forecast, and that policy
would remain stimulative even if the BoE raised rates slightly.
Some members of the BoE's Monetary Policy Committee have
said they would be wary about raising interest rates from their
record-low 0.25 percent because of the lack of scope to cut
rates by much if this damaged the economy.
But Saunders said being too slow to raise rates to tackle
inflation could be just as bad.
"I'm not sure that one is a bigger error than the other," he
said in a question and answer session.
(Reporting by Andy Bruce, writing by David Milliken; editing by