Ian McCafferty jumps into the seat vacated by Vlieghe

  • Rise in the neutral rate is likely to be relatively slow
  • Would prefer to use interest rates instead of QE in future
  • Sees great uncertainty about level of slack
  • Many risks to UK come from the global economy
  • There may be some growth in productivity but it still may be depressed for some time
  • Says low rates may fuel a capital misallocation
  • Still thinks that there is scope to cut rates further if we had to do so
  • Believes further QE would have an impact in stimulating the economy, if it were required

A reminder that McCafferty is the only MPC member voting for hikes right now