BoE’s Bean: Rate Hikes may Start Earlier

The Bank of England’s plan to increase interest rates only gradually means it should move earlier than would otherwise be the case, a top BoE policymaker told BBC Radio on Sunday.

“There’s a case for moving gradually because we won’t be quite certain about the impact of tightening the Bank Rate given everything that has happened to the economy,” BoE Deputy Governor Charlie Bean said in the BBC interview.

“It might not operate in quite the same way as before the crisis. So that’s an argument if you like for being a bit cautious, moving in baby steps to avoid making mistakes,” he said. “If you want to pursue that strategy you need to start taking those baby steps a bit earlier, otherwise you end up being behind the curve.”

CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.