More comments by BOE MPC member Vlieghe
- Favours BOE moving in direction of being more explicit about interest rates path
- Says that May meeting was an example of the MPC responding to data
- There was a low cost to holding off a rate hike in May meeting
- Weak investment has given a direct hit to productivity
- Not convinced that there has been a change in weak UK productivity growth trend over recent quarters
His comments are quite scattered all over the place. In short, he says that his view is similar to the committee's view - which is that Q1 data was poor and that they held off a rate hike because of it. Brexit uncertainty is a risk but it's not one that the BOE is too focused on. If Brexit risks fade as the BOE expects, then rate hikes will come forward without any doubt.
I'm just afraid all of this is all too familiar. So much is being put into priming the market for a rate hike and to signal the central bank's willingness to tighten monetary policy but where is the data to support it?
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