BOE’s Broadbent: Possible that rates could rise in UK
More comments flowing in from the BOE policymaker Ben Broadbent, via Reuters, as he continues to speak at Imperial College, in London.
Key Points:
It's reasonable to expect the big deficit in primary income, part of the current account balance, to go away
Doesn't see much pressure from wage growth and unit costs
Won't say if he was one of the "some" close to considering reducing stimulus at the last MPC meeting
There's no material evidence of domestic inflation pressures
Weaker sterling has not been caused by monetary policy
It's quite possible we could see rates go up in the UK
Can see scenarios where BOE could raise rates
BOE forecasts are conditioned on a gentle rise in rates
We think strong caution in FX market will also apply quite a bit to investors that would otherwise invest in the UK because of weakening sterling
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
