BoE's Bean: Expectations of a rate rise later this year reasonable

FXStreet (Bali) - Outgoing Bank of England Deputy Governor Charlie Bean,who is due to leave his post at the Central Bank later this month, told Sky television on Sunday that market expectations of a rise in UK interest rates at the turn of the year are “reasonable”.

Bean added: "The market has rates going up to 2.5% over next 3 years. That seems like a broadly sensible judgment. It might be reasonable to think that in that long term you would go back to 5% but it’s probably quite a long way down the road."

"I think it will be natural either at the time the MPC (Monetary Policy Committee) raises bank rates, or some time shortly thereafter, to say ‘OK, we won’t reinvest maturing gilts,” Bean also said.