BOE Declares Rate Rises Depend on Economy

A Bank of England policy maker said a hike in interest rates in Britain will depend on how the economy performs over the summer and autumn, the Guardian reported.

“Were we to have to go early – and that will depend on how the economy performs over the summer and autumn – I think it would have been damaging if it was portrayed as a surprise. It appeared the markets were more certain of the date of lift-off [for rates] than we were,” Ian McCafferty – a member of the Monetary Policy Committee – told the British newspaper in an interview.

McCafferty said unemployment was significantly higher than its medium-term natural level but added that the economy had come a long way in the last 12 to 18 months and that GDP was now coming back to the level of 2008.

Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.