2/14, 11:15 AM (Source: TeleTrader)
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BoE's Vlieghe: Rate decisions put off until growth stabilizes

"I feel I can probably wait to see evidence of growth stabilizing and inflation pressure rising before considering the next hike in Bank Rate," Bank of England's Member of the Monetary Policy Commitee Gertjan Vlieghe said on Thursday, noting that should the growth recover, the tightening of monetary policy should be moderate, with a 2.5% hike a year.

In the event of no-deal Brexit, he noted, economic disruptions "could possibly be severe," and easing or an extended pause in monetary policy would be more likely than tightening and would make policy makers to "judge in real time" how well inflation expectations remain anchored. However, he stated, the BoE would raise rates after a no-deal Brexit if needed, even if such a decision would be politically unpopular.

Breaking the News / GG