Comments from Bean in the Western Mail:
- BOE rate increases to happen gradually
- Space capacity can be used before price pressures build
- UK needs more business investment, export pickup
- Full interview
Business investment and better exports are the holy grail of growth at the moment.
“There is an argument for trying to move cautiously in baby steps, if you take large steps there is a greater likelihood of getting it wrong.
“So the committee has been clear in the guidance we issued back in February that when the bank rate does rise, and we don’t think there is a case for an immediate rise, we expect it to do so gradually and to a level in the medium term which is likely to be materially below its pre-crisis average of around 5%.”
