Reuters logo
Higher inflation and weaker growth complicate BoE outlook: McCafferty
December 20, 2016 / 11:30 AM / a year ago

Higher inflation and weaker growth complicate BoE outlook: McCafferty

LONDON (Reuters) - Higher inflation, weaker growth and a likely hit to the supply side of Britain’s economy after June’s vote to leave the European Union complicate the outlook for Bank of England policy, rate-setter Ian McCafferty said on Tuesday.

Ian McCafferty, Monetary Policy Committee member of the Bank of England speaks during a Reuters interview at the Bank of England in London February 24, 2014. REUTERS/Suzanne Plunkett

McCafferty also repeated the Bank’s view that interest rates are as likely to rise as fall, after the Monetary Policy Committee shifted to a neutral policy stance last month.

“This confluence of trends - rising inflation, initial demand resilience but a slowdown in growth in prospect and a likely hit to supply over the longer term - provides a challenging background for policy setting,” McCafferty said in a speech published on Tuesday.

Reporting by Andy Bruce, editing by David Milliken

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below