Not in a hurry to raise interest rates – BOE’s Vlieghe
|By FXStreet FXStreet (Mumbai) – Bank of England (BOE) policymaker Gertjan Vlieghe delivered a speech at the London School of Economics just before the NY close, and argued that he needs to feel more confident over the inflation outlook before raising rates.
Key Quotes:
For hike need inflation indicators on up path
For rate hike need growth not to slow further
UK still solid but has been slowing
Inflation pressure muted on wide range of measures
Will be “patient” before raising rates
Upward wage pressures “surprisingly absent” so far
Real interest rates may be much lower than before, for a given growth rate
Patience also needed because monetary policy cannot respond as well to bad news as to good news
I am not in a hurry to raise interest rates
MPC re-evaluating if equilibrium jobless rate 5%
Don’t see ingredients now for next recession
Keep an open mind if bank rate can go negative
We can ease a little, hike a lot: hence asymmetry
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Source:: FX Street