BOE deputy governor Ben Broadbent speaks in Bloomberg interview – comments crossing the wires:

  • Says ‘quite possible’ sterling is overvalued
  • First rate increase shouldn’t be ‘massive shock’
  • Sees case for raising rates earlier for gradual path
  • Says weaker wages suggest BOE underestimated slack
  • Slack being eaten up faster than BOE forecast says some increase in wages is likely
  • Says pound would weaken if global growth accelerated
  • Says household debt hardens case for moving gradually
  • Raising rates would be sign economy is recovering
  • Guidance isn’t ‘hard and fast,’ depends on data
  • Rates likely to be lower than in past expansions
  • Says rate increases likely to be limited, gradual
  • Possible growth in past year closer to 4% than 3%
  • Sees growth slowdown toward end of year, early 2015
  • 3Q growth forecast may be revised up marginally
  • Says ‘the edge is coming off’ UK housing market
  • Debt level not argument for doing nothing on rates
  • Exchange rate result of imbalances, not the cause
  • Risk of leaving move too late is faster inflation
  • Says a concern growth in rest of the world is so weak

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Broadbent spoke yesterday as well: Broadbent Says Global Growth Creating Drag on U.K. Recovery