Ramsden: The Bank of England might need to raise British interest rates
Deputy Governor Dave Ramsden says if wage growth picks up early this year it could happen
Ramsden was one of two policymakers who opposed the BoE’s decision in November to raise interest rates for the first time in a decade, but appears to have shifted his stance somewhat in comments published by the Sunday Times newspaper.
Earlier this month the central bank said interest rates might need to rise somewhat sooner and by somewhat more over the next three years than policymakers had expected in November, due to a strong global economy and signs wages are rising faster.
The BoE’s chief economist, Andy Haldane, told lawmakers on Wednesday that he thought interest rates might need to rise slightly faster even than the central bank had expected when it set out fresh economic forecasts early in the month.
However, Governor Mark Carney said at the same event that future monetary policy decisions would depend heavily on how businesses and consumers react to ongoing talks on the terms of Britain’s departure from the European Union in March 2019.
Published: by Radio NewsHub