LONDON (Reuters) - The Bank of England must not start raising interest rates too late if it is to carry out its plan to raise rates only at a gradual pace, a member of its policymaking committee said.
Ian McCafferty said the need for a first rate hike might appear less pressing because the BoE believes the "neutral" interest rate is materially lower than before the crisis.
"On the other hand, a gradual trajectory for rates can be ensured only if the first rate rise is not held back, such that we start the normalisation process before the economy reaches effective capacity constraints, so that inflation expectations and pressures are kept well in check," he said.
McCafferty's comments were made on April 1 at a speech which was closed to media. They were given to media on Tuesday.
(Writing by William Schomberg,; editing by David Milliken)