BOE’s McCafferty: It would be "prudent" to start raising interest rates

Dhwani Mehta FXStreet

Adding to the recent hawkish twist from the Bank of England (BOE), Ian McCafferty, a member of the BOE's Monetary Policy Committee (MPC), also delivered hawkish remarks on the interest rates outlook.

Key Quotes via Daily Post:

"We made the last interest rate cut from 0.5% to 0.25 last August after the EU referendum decision when it was felt that a stimulus was needed.”

"Since then the economy has not slowed to the extent we feared it would last summer and meanwhile inflation has been high."

"I feel on the balance of monetary policy that there is a need for change.”

"I think this would be justified and would be the prudent thing to do at this stage."

"It would be foolhardy of me to predict what colleagues will decide to do at future meetings.”

"There are uncertainties and the decisions made are very data dependent and we will look at the latest data next time we meet.”

"With the many uncertainties it is not surprising that different members of the committee look at the economy in different ways."

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.

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