Quote from a Yorkshire Post newspaper interview published today but no shift in stance
Nemat “Minouche” Shafik is the recently appointed dep gov for markets and banking and former deputy managing director of the International Monetary Fund
GBPUSD a tad higher at 1.6328 EURGBP on session lows of 0.7817
- wage growth with productivity gains can delay rate rises
- productivity gains will guide rate increases
- UK recovery is “encouraging” but have to find ways to sustain it
- Europe poses significant risks to UK economy
- BOE asset sales are still “a way away”
If wage increases are expected but productivity is performing well we can wait for longer; if those wage increases are not accompanied by productivity increases then I think we will have to move more quickly on rates because inflationary pressures will build up.
I think that’s the key choice that we face
Full interview here
Shafik focuses on productivity gains
