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Higher inflation and weaker growth complicate BoE outlook: McCafferty

Published 12/20/2016, 06:30 AM
Updated 12/20/2016, 06:40 AM
© Reuters. Ian McCafferty, Monetary Policy Committee member of the Bank of England speaks during a Reuters interview at the Bank of England in London

LONDON (Reuters) - Higher inflation, weaker growth and a likely hit to the supply side of Britain's economy after June's vote to leave the European Union complicate the outlook for Bank of England policy, rate-setter Ian McCafferty said on Tuesday.

McCafferty also repeated the Bank's view that interest rates are as likely to rise as fall, after the Monetary Policy Committee shifted to a neutral policy stance last month.

"This confluence of trends - rising inflation, initial demand resilience but a slowdown in growth in prospect and a likely hit to supply over the longer term - provides a challenging background for policy setting," McCafferty said in a speech published on Tuesday.

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