Bank of England policy maker Kristin Forbes has warned that waiting too long to raise rates could damage recovery, in an article for The Telegraph.

Ms Forbes, who joined the nine-strong MPC committee responsible for setting interest rates in July last year

She has said a rate hike could well take between one and two years to take full effect, and although inflation is currently well below target at around 0%, the economy is on the up and now is the time to start seriously considering a rate rise.

“One should plan for the future – especially if precautionary actions take time to be effective.

“An increase in interest rates is generally believed to take somewhere from one to two years to have its maximum impact. Maintaining interest rates at the current low levels during an expansion risks creating distortions.

Therefore, interest rates will need to be increased well before inflation hits our 2pc target”

Forbes joined the Monetary Policy Committee in July last year. In August’s meeting only one member voted to raise rates, compared to the two or three expected by analysts.