One of the Bank of England’s Monetary Policy Committee hawks has urged the institution not to “dally” in raising interest rates, as the UK economy continues to improve.

“Continuing with the slow reduction in monetary stimulus without undue delay could well prevent the need for a more aggressive tightening later on,” Ian McCafferty said in his last scheduled speech as an MPC member.

Under the BoE’s latest forecasts, the economy is projected to move into excess demand within two years. The