Not in a hurry to raise interest rates – BOE’s Vlieghe

FXStreet (Mumbai) - Bank of England (BOE) policymaker Gertjan Vlieghe delivered a speech at the London School of Economics just before the NY close, and argued that he needs to feel more confident over the inflation outlook before raising rates.

Key Quotes:

For hike need inflation indicators on up path

For rate hike need growth not to slow further

UK still solid but has been slowing

Inflation pressure muted on wide range of measures

Will be "patient" before raising rates

Upward wage pressures "surprisingly absent" so far

Real interest rates may be much lower than before, for a given growth rate

Patience also needed because monetary policy cannot respond as well to bad news as to good news

I am not in a hurry to raise interest rates

MPC re-evaluating if equilibrium jobless rate 5%

Don’t see ingredients now for next recession

Keep an open mind if bank rate can go negative

We can ease a little, hike a lot: hence asymmetry