BoE will need to raise rates to 4.75% to bring down inflation - NIESR

FILE PHOTO: Bank of England raises interest rate to 1.75% as inflation hits 13%

LONDON (Reuters) - The Bank of England will probably need to raise interest rates to 4.75% in order to bring inflation back to its 2% target, something only likely to be achieved in three years' time, the National Institute of Economic and Social Research said.

Last week, the BoE raised Bank Rate to 3% as it sought to counter the risks from an inflation rate currently running above 10%, but it also said investors were pricing in too many further increases.

(Writing by William Schomberg; Editing by Sachin Ravikumar)