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