- Gertjan Vlieghe, BoE's policymaker
The Bank of England newest rate-setter Gertjan Vlieghe hinted that interest rates may remain lower for longer or even be cut if a slowdown in Britain's economy intensifies. Vlieghe, who joined the central bank's Monetary Policy Committee in September, said that he wants to see more clues that economic growth is holding solid and inflationary pressures are mounting, before voting for a rise in borrowing costs. Vlieghe's comments are likely to strengthen expectations in financial markets that the Bank of England will not immediately follow the Fed and raise short-term interest rates from record lows. Investors doubt the UK central bank will hike its key rate from 0.5% until mid-2017. In his comments, Vlieghe said pay growth appeared to have stalled, adding that he was not confident that annual inflation is moving towards the central bank's 2% target. Vlieghe said that heavy debt loads, ageing populations and rising inequality meant that interest rates in many developed economies should stay lower now than they were in the past to support growth.
BoE's Governor Mark Carney is due to address rate expectations in a speech later in the day. In July last year, he said decision on whether to hike rates would become clear around the turn of the year.
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