Trigger recession to tame inflation, say economists - as Bank poised to raise interest rates

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The Bank of England has no choice but to trigger a recession to finally get inflation under control, have warned top economists, including one of its own advisers to Chancellor Jeremy Hunt.

The central bank is set to raise interest rates for the 13th consecutive time today after shock inflation figures showed that previous hikes have failed to reduce persistent price rises.

Some of Mr Hunt's advisers have attacked the Bank for being too cautious in raising the base rate - saying that it was time to accept the inevitability of a recession.

Karen Ward, a member of the Chancellor's Economic Advisory Board, said: "The difficulty for the Bank is that they have to create a recession to creating uncertainty and fragility.

She added, "It's only when companies feel nervous about the future that they think they won't experience hikes.

Adam Posen – a former member of the Bank of England's Monetary Policy Committee (MPC) which sets the base rate – said there is no other way. also declared that a recession was now necessary. "In the absence of a recession, inflation will not return to target sustainably," he said.

Mr. Posen accused the Bank of "talking enthusiastically about lower inflation" after Wednesday's figures showed inflation frozen at 8.7%.< /p>

Sushil Wadhwani, a former member of the MPC, which also sits on Mr Hunt's economic advisory board, added: "The Bank has tried to be too cute and on frequent occasions when it has raised rates it has canceled the benefits talking dovishly about it. "

A 4.5% to 4.75% increase is very likely when Governor Andrew Bailey announces the decision at noon - but a bigger increase to 5% is a possibility after disappointing inflation figure.