© Reuters. FILE PHOTO: Bank of England Monetary Policy Committee Member, Gertjan Vlieghe looks on during a Reuters Newsmaker event in London, Britain July 12, 2019. REUTERS/Henry Nicholls
LONDON (Reuters) – The Bank of England is only likely to start to raise interest rates “well into” next year, although a move could come earlier in 2022 if the economy rebounds faster than expected, BoE policymaker Gertjan Vlieghe said on Thursday.
“My central scenario is that the economy evolves similarly to the MPC’s central projection in May, but with somewhat more slack than in the central projection,” Vlieghe said in a lecture at the University of Bath.
“In that scenario, the first rise in Bank Rate is likely to become appropriate only well into next year, with some modest further tightening thereafter,” he added.
Slower growth could require the BoE to increase stimulus, however, Vlieghe said.
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