March 24, 2017 / 12:55 AM / 5 months ago

BoE's Vlieghe says inflation rise does not mean rate hike - The Times

March 23 (Reuters) - Bank of England policy maker Gertjan Vlieghe said a rise in inflation would not make him consider raising interest rates, The Times reported on Friday.

Vlieghe told The Times inflationary pressure is the result of sterling's devaluation and the consequent rise in prices of products such as fuel and food. (bit.ly/2niweJB)

The dovish BoE member said that if "pass-through of exchange rate to inflation" is faster than the BoE's estimate, it would mean that inflation may go higher to 3 percent or 3.5 percent.

Vlieghe, however, also said that it meant inflation "might come down faster afterwards" as it is not obvious what the impact for the monetary policy will be or whether it will have any impact at all. (Reporting by Kanishka Singh in Bengaluru; Editing by Bill Rigby)

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