LONDON (Reuters) - Bank of England Deputy Governor Ben Broadbent said on Thursday it was possible that interest rates could rise, but he also highlighted a strong sense of caution among investors about the outlook for Britain after Brexit.
“It’s quite possible that interest rates could go up. It’s quite possible. Our forecast was conditioned on pretty gentle rises but rises nonetheless,” Broadbent said, answering questions after a speech at Imperial College in London.
But Broadbent highlighted a sense of nervousness about Britain’s economic prospects that also weighed on the outlook.
“We think this caution that is very strongly there in the foreign exchange market will also apply somewhat, quite a bit, to investors, businesses that might otherwise have a powerful incentive to invest in the UK because of this,” Broadbent said.
Reporting by William Schomberg, writing by Andy Bruce, editing by Larry King