FXStreet (Bali) – BoE’s Weale, considered one of the most hawkish members of the committee, said over the weekend that need for tighter policy is “slightly less immediate” at present.
“The factors pushing down on inflation have become a bit more prolonged,” he said in an interview with the Telegraph. “I initially thought that the weak wage growth was a wobble that represented stray numbers that you get once or twice from time to time. There has plainly been something more to it than that,” Weale said.
“The factors pushing down on inflation have become a bit more prolonged. There are questions about exactly when, but I certainly find it hard to believe that the market curve is consistent with what I would be doing if I were staying on the MPC”, the policy-maker said. Weale added that “my sense is that to keep inflation on target, rates need to be at some point higher than markets imply.”
(Market News Provided by FXstreet)