LONDON – Bank of England Monetary Policy Committee Member
Andrew Sentance warns today that monetary discipline and
confidence in the inflation target risks being eroded if emergency
monetary policy settings remain intact for too long.
Sentance reiterated his call for the BOE MPC to start
gradually raising Bank Rate.
“I worry that monetary discipline and confidence in the inflation
target risks being eroded by keeping emergency settings for monetary
policy in place for too long, when the growth and inflation outlook
points in a different direction,” Sentance told an audience in Belfast.
“The longer we keep interest rates at an exceptionally low level,
the greater is the risk that Bank Rate would need to rise sharply in the
future creating a serious setback to business and consumer confidence,”
he added.
–London newsroom: 4420 7862 7491; email: wwilkes@marketnews.com
[TOPICS: M$B$$$,M$$BE$,MSSFX$]
