More comments from BOE officials on rate hike prospects

Author: Greg Michalowski | Category: Central Banks

On tightening.

Earlier, BOEs Bailey said:
  • MPC members were split in August 4-4 on whether the minimum conditions were met to raise interest rates
The members are now adding.

  • I think minimum conditions for a rate rise have been met, but not sufficient for one
  • too early to reach conclusion on how much business insolvencies will rise
  • Banks are saying rate of repayment of Covid loans is higher than they expected but days are still early
  • necessary but not sufficient condition for rate rise have been met
  • I do not think guidance conditions for rate rise have been met
  • BOE should look at medium-term inflation pressures, supply is currently temporarily disruptive
  • demand still has some way to go to get back to where it was headed before Covid
  • premature tightening risks causing scarring
  • I think minimum conditions for a rate hike have been met, but need to focus on medium-term

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