- Martin Weale, BoE policymaker
Even policymakers are impatient about the upcoming shift in the BoE's monetary policy. While the Governor is trying to assess the remaining slack in the economy, other members are calling for sooner-than-expected rate hike. Despite the fact previous GDP report failed to deliver stronger expansion, the economy is on the right track, hence, there are clear indicators the central bank should revise its monetary policy plans.
Addressing this issue, BoE policymaker Martin Weale pointed out that Carney should raise interest rates rather sooner than later in order to avoid painful hikes in the upcoming future. However, he also stated that the time has not come yet. Weale is confident rate hikes will be only gradual and first tightening will involve no more than 25 basis points per quarter. Analysts, however, are betting on a more aggressive tightening, saying the Bank of England will raise the key refinancing rate by 1.8% over the next three years. Weale's comments echoed with the central bank's position expressed many times. Carney has already pledged adjustments will be only "gradual and limited". Economists believe the Bank of England is poised to become the first leading bank to tighten its monetary policy since the ECB has done a similar step in the summer of 2011. While Mr. Weale's comments are just an opinion of one of the members, many believe he will be the first MPC member to vote for a rate hike.
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