BoE's next move likely to be rate hike

London - The Bank of England's next monetary policy move is likely to be an increase in interest rates because the factors that have pushed down inflation sharply are largely transitory, a policymaker at the bank said on Thursday.

"It seems to me that the most likely next move in monetary policy will be a gradual and limited increase in interest rates," Deputy governor Minouche Shafik said in a speech.

"The underlying picture is one in which domestic demand is expected to continue growing robustly, facilitating a pick-up in wage growth, which we are starting to see, and a return of inflation to target."