BoE's Shafik: Rate hikes dependent on productivity gains

FXStreet (Łódź) - In an interview published in the Yorkshire Post on Thursday BoE Deputy Governor Nemat Shafik suggested that rates could be hiked earlier if productivity gains lagged behind wage increases, not to allow inflationary pressures to grow.

Shafik suggested that the recovery in the UK was "encouraging" but that that it could be hampered by the economic slowdown in the Eurozone.

GBP/USD remained steady at 1.6329 and EUR/GBP at the session low of 0.7817 following the publication of the interview.