18 Jun 2014
BoE's Weale signals readiness to vote for higher rates
FXStreet (Łódź) - Following the release of the minutes from BoE's last interest rate meeting, which revealed that the MPC unanimously supported keeping monetary policy on hold, member Martin Weale suggested that he was ready to vote for higher rates next time, as small measured increases wouldn't damage the UK economy.
“Even after interest rates have started a gradual rise, monetary policy will still be providing a great deal of support for the economy,” Weale said in a speech. “Moreover, other things being equal, the policy of raising Bank Rate gradually does imply that the first rise needs to come sooner than would otherwise be the case."
The BoE rate-setter also suggested that the slack in the UK labor market could be overestimated and that spare capacity in the economy should be rater seen in a range of 0.33% to 1.5%, not as the central bank believes 1-1.5%.
“Even after interest rates have started a gradual rise, monetary policy will still be providing a great deal of support for the economy,” Weale said in a speech. “Moreover, other things being equal, the policy of raising Bank Rate gradually does imply that the first rise needs to come sooner than would otherwise be the case."
The BoE rate-setter also suggested that the slack in the UK labor market could be overestimated and that spare capacity in the economy should be rater seen in a range of 0.33% to 1.5%, not as the central bank believes 1-1.5%.