LONDON: UK inflation pressures could pick up quickly and other factors could force an interest rate hike in the near future.
Kristin Forbes said in a speech on Tuesday that the risks from a return of inflation, asset price bubbles in the financial sector and levels of consumption and savings were “moderate and manageable” at the moment.
All of these trends merit close attention,” she said. “Any could factor into a case to tighten monetary policy in the near future. But they do not currently appear to be generating a sufficient cost to merit a change in interest rates today.”
The BoE’s nine rate-setters all voted to keep rates at their record low of 0.5 percent at their January and February meetings.
