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26 Feb 2014
BoE policymakers assure sudden rate hike not probable
FXStreet (Łódź) - Speaking ahead of the UK GDP data release on Wednesday, two BoE MPC members, David Miles and Spencer Dale told the BBC radio that the central bank was not planning to rise rates in the nearest future, despite the recent improvements in the UK economic situation.
“Interest rates will have to rise at some point but not yet,” Spencer Dale stressed adding that “when they do they will rise very gradually and cautiously to make sure we continue to nurture the recovery we have seen in output growth and employment.”
Meanwhile, David Miles pointed out that inflation was now close to BoE's target, at 1.9%, and that “it looks like it is going to stay there.” He suggested that the interest rate hike could come in 2015, but that nothing was certain yet and that despite the recent improvements there was still a lot of slack in the UK economy.
One more BoE MPC member, Ben Broadbent, will also be speaking in London today, at the same time as the GDP numbers are released.
“Interest rates will have to rise at some point but not yet,” Spencer Dale stressed adding that “when they do they will rise very gradually and cautiously to make sure we continue to nurture the recovery we have seen in output growth and employment.”
Meanwhile, David Miles pointed out that inflation was now close to BoE's target, at 1.9%, and that “it looks like it is going to stay there.” He suggested that the interest rate hike could come in 2015, but that nothing was certain yet and that despite the recent improvements there was still a lot of slack in the UK economy.
One more BoE MPC member, Ben Broadbent, will also be speaking in London today, at the same time as the GDP numbers are released.