Additional comments from Bank of England’s Gertjan Vlieghe
- A stronger world economy and labour market tightness is telling us that a further rise in rates is likely to be appropriate if the strength continues
- Stresses that there is still a huge uncertainty around the rate path
- Rates could go up faster or more slowly
- The neutral UK interest rate is also very uncertain
- Interest rate outlook depends on an uncertain economic outlook over the next few weeks
- 3 rate hikes still leaves some excess demand
These comment come on top of some from earlier;
- If there is less credit headwind to UK economy then it may be ready for higher rates
- There is increased evidence that tight labour markets are beginning to push up wages
The pound went up a touch to 1.3873 as another BOE member talks about rate hikes, even though he’s playing it pretty safe from both sides of the hawk/dove fence.
Ryan Littlestone
Psychedelic chartist extraordinaire. Have your shades ready.
Philosophy: “Don’t be a Dick for a tick”
Read how Ryan got into trading here
Philosophy: “Don’t be a Dick for a tick”
Read how Ryan got into trading here
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