25 Mar 2015
Interest likely to rise – BOE’s Shafik
FXStreet (Mumbai) - Speaking to local daily today, Bank of England (BOE) policy maker and rate-setter Minouche Shafik said that interest rates are more likely to go up rather than down despite the current low inflation.
Shafik noted, "Inflation is below the 2% target we are meant to have achieved but the real drivers behind that are temporary and mainly external. It is mainly about import prices and the sharp drop in the price of oil as well as the effects of sterling’s appreciation in the past."
Shafik's comments come shortly after BoE chief economist Haldane said there was scope for either a cut or a rise in the base interest rate to offset inflation risks being broadly balanced on both the upside and downside.
Shafik noted, "Inflation is below the 2% target we are meant to have achieved but the real drivers behind that are temporary and mainly external. It is mainly about import prices and the sharp drop in the price of oil as well as the effects of sterling’s appreciation in the past."
Shafik's comments come shortly after BoE chief economist Haldane said there was scope for either a cut or a rise in the base interest rate to offset inflation risks being broadly balanced on both the upside and downside.