BoE's Cunliffe: Any future rate increases to be limited and gradual

Eren Sengezer FXStreet

Bank of England (BOE) Monetary Policy Committee (MPC) member and Deputy Governor Cunliffe on Monday said that a great deal of careful deliberation was needed before changing the monetary and fiscal framework due to structurally low interest rates and reiterated any future rate increases would likely be limited and gradual, per Reuters.

"We need active and powerful macro-prudential institutions and policy," Cunliffe argued. "Counter-cyclical capital buffer may need to be made more powerful if interest rates low for longer."

Cunliffe refrained from delivering any other comments on the policy outlook. As of writing, the GBP/USD pair was down 0.9% on the day at 1.2533.

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Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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