Not in a hurry to raise interest rates – BOE’s Vlieghe

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - Bank of England (BOE) policymaker Gertjan Vlieghe delivered a speech at the London School of Economics just before the NY close, and argued that he needs to feel more confident over the inflation outlook before raising rates.

    Key Quotes:

    For hike need inflation indicators on up path

    For rate hike need growth not to slow further

    UK still solid but has been slowing

    Inflation pressure muted on wide range of measures

    Will be "patient" before raising rates

    Upward wage pressures "surprisingly absent" so far

    Real interest rates may be much lower than before, for a given growth rate

    Patience also needed because monetary policy cannot respond as well to bad news as to good news

    I am not in a hurry to raise interest rates

    MPC re-evaluating if equilibrium jobless rate 5%

    Don’t see ingredients now for next recession

    Keep an open mind if bank rate can go negative

    We can ease a little, hike a lot: hence asymmetry
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