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.

Bailey: 
  • 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
Ramsden:
  • necessary but not sufficient condition for rate rise have been met
Tenreryo:
  • 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
Broadbent:
  • I think minimum conditions for a rate hike have been met, but need to focus on medium-term


Invest in yourself. See our forex education hub.
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose