Daily Management Review

Bank of England interest rate hike signal is a target not a promise: BoE’s Deputy Governor


11/03/2017


The comments come in the wake of the central bank having to manage the consequences of Brexit, including stoking inflation, whose widespread ramifications weren't mapped out during the historic referendum.



Bank of England interest rate hike signal is a target not a promise: BoE’s Deputy Governor
On Friday, Ben Broadbent, the deputy governor of the Bank of England said the central bank may need to raise interest rates two more times to get its targeted inflation rates.
 
However he has had underlined the fact that the possibility of raising interest rates twice is a target and not a promise.
“Given all the other things we assume in our forecasts, many of which will be misses..., we anticipate we will need maybe a couple more rate rises to get inflation back on track while at the same time supporting the economy,” said  Broadbent on BBC radio.
“That is not a promise, and it never could be a promise. And that is not what the governor said yesterday either.”
 
His comments were in response to a question about the central bank’s previous attempts to signal the likely path interest rates, which were knocked off course by twists and turns in the economy, are likely to take.
 
On Thursday, the Bank of England, for the first time since 2007, had raised interest rates.
 
Despite this move the sterling slipped sharply since the central bank said, it expects the rise of interest rates to be “very gradual”.
 
 
References:
www.reuters.com







Science & Technology

Europe overtakes US by number of patents for self-driving car technologies

Samsung introduces display technology for folding screens

How retailers use technologies to increase sales

Facebook releases videochat devices Portal and Portal Plus

Smartphone makers will pay for pre-installing Google apps‍

Five loudest data leaks

Airbus announces Moon exploration competition

Former Head Of Google China Thinks Funding In AI Should Be Doubled By US

Germany Introduces The First Ever Train To Run On 100% Hydrogen

Germany Plans On Cyber Security Research To End Reliance On U.S. Tech

World Politics

World & Politics

Bloomberg: Theresa May can face catastrophic defeat in parliament

New Asian Foreign Policy May Be Set By Congress After Democrats Taking Control Of House

Italy refuses to change draft budget

Italy is about to tighten its migration policy

Macron calls to create a pan-European army

Signals Of Mending Of US-China Emerge Before Anticipated G20 Meet

Moscovici: the European Commission may impose sanctions on Italy

US’s Iran Ban Comes Into Force, US Dodges Question On Exemption Of India & China