Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

BoE's Cunliffe keeps cards close on rates outlook: BBC

Published 06/28/2018, 01:25 AM
Updated 06/28/2018, 01:25 AM
© Reuters. FILE PHOTO -  Bank of England Deputy Governor Jon Cunliffe speaks at the 'Future Forum 2017' event in St George's Hall, Liverpool

© Reuters. FILE PHOTO - Bank of England Deputy Governor Jon Cunliffe speaks at the 'Future Forum 2017' event in St George's Hall, Liverpool

LONDON (Reuters) - Bank of England Deputy Governor Jon Cunliffe offered no hints on Thursday that he is likely to vote for higher interest rates soon, pointing instead to the central bank's guidance that rates are likely to rise in a gradual and limited fashion.

Earlier this month investors were surprised when the Bank's chief economist Andy Haldane joined a minority of officials calling for an immediate rise in rates, boosting the chances of a hike in August.

Cunliffe, asked in a BBC radio interview about the prospect that rates could rise from 0.5 percent to 2.5 percent within a couple of years, said: "Financial markets are assuming that interest rates go up by another three-quarters of a percentage point over the next couple of years."

"We do our forecasting on the basis of where the financial markets have those interest rates and we think we have inflation at target at those sorts of levels," he said.

Cunliffe also said he was worried that British households with high debt levels could be vulnerable in a recession.

"(Household debt is) quite high by historical standards but (households have) worked hard to put those debt levels down. But within that there are areas that you do worry about," Cunliffe said.

"You worry about households that have high debt (and) could be badly affected in a recession," he said.

© Reuters. FILE PHOTO -  Bank of England Deputy Governor Jon Cunliffe speaks at the 'Future Forum 2017' event in St George's Hall, Liverpool

Asked if he wanted to succeed Governor Mark Carney, who steps down next year, Cunliffe said: "I've got a really challenging and difficult job and I'm just focusing on doing it the best I can."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.