Boe’s McCafferty says a small increase in interest rates is likely

  • Boe’s McCafferty says a small increase in interest rates is likely
    Independent.t. E.
    It is advisable for financial markets to expect a few small interest rate rises from the Bank of England (boe) over the next two years, at a rate-setter at the Bank of England’s Ian McCafferty.
    https://www.independent.ie/business/world/boes-mccafferty-says-small-interest-rate-hikes-likely-37193738.html
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It is advisable for financial markets to expect a few small interest rate rises from the Bank of England (boe) over the next two years, at a rate-setter at the Bank of England’s Ian McCafferty.

“We are only talking in the next couple of years, perhaps a few smaller interest rates over this period. That’s what the markets were expecting, and I think that’s a reasonable rule: if the economy works the way we expected,” said McCafferty said in a question-and-answer show on radio lbc.

His comments echoed those of the Governor of the Bank of England mark Carney last week after the Bank of England raised the cost of borrowing for only the second time since the financial crisis more than a decade ago.

Mr. McCafferty is a member of the rate-setting Bank of England Committee.

Last week nine bets-setters unexpectedly voted for a rate hike To 0.75 PC, from 0.5 PC, the level at which they spent most of the last decade, except for the period after 2016 leaving the UK to vote when they were reduced even lower.

But sterling fell against the dollar and the Euro and British government bond prices rose after the Bank of England Governor mark Carney stressed that a gradual path for rate hike ahead.

“Policy needs to go – don’t stand still,” he said as he explained the new Index estimates of neutral interest rates for the British economy, which the Central Bank believes will gradually grow on the background of steady growth of the world economy.

UK growth has slowed since the decision of the referendum in 2016 to leave the EU.

But the Bank of England has pushed ahead with a rate hike, because he believes that the economy is operating close to the “speed limit”, or full power, creating preconditions for a more homegrown pressure is found. (Reuters)

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