BOE's McCafferty wants rates at a level that they can cut again

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