"The path of interest rates that's necessary to meet our mandate is going to be materially different than it has in the past."
- Ben Broadbent, Bank of England Deputy Governor
Speaking at the economic symposium in Jackson Hole this Saturday, the Deputy Governor of the Bank of England and, respectively, the MPC member Ben Broadbent mentioned the future perspectives for interest rates in the U.K. He pointed out several conditions, which are likely to determine the level of interest rates, including the first rate hike from the BoE, which is going to take place in the nearest future. The changes will come from the Bank's mandate itself, which currently combines inflation level and economic growth in setting the rates. With productivity growth getting more unpredictable, the regulator will look at the unemployment level even closer, taking into account the Forward Guidance of the previous year. Ben Broadbent underlined the importance of changing jobless rate and growth levels during the crisis time. Last week, the MPC votes split 7-2 in favour of keeping the interest rates unchanged.
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