The need for interest rates to rise to keep the British economy on track is now widely accepted, according to the chief economic adviser to the British Treasury, Mr Ed Balls.
The Bank of England's Monetary Policy Committee will hold its next rate-setting meeting this week amid widespread expectations that it will add to November's rise with another quarter-point increase, taking borrowing costs to 4 per cent.
"As the Confederation of British Industry (CBI) demonstrated this week, there is now a consensus - across both industry and the regions - that a forward-looking and pre-emptive approach to monetary policy, backed by a sound fiscal policy, is the best way to lock in stability and deliver balanced regional growth," Mr Balls said.
He was referring to Confederation of British Industry chief Mr Digby Jones who earlier this week acknowledged that interest rates needed to rise now that the economy was growing strongly.
Mr Balls added that growth was picking up in all regions of Britain and - with manufacturing output increasing and consumption easing - growth was becoming more balanced.