23 Jan 2014
BoE's Fisher assures interest rates will stay low for some more time
FXstreet.com (Łódź) - Bank of England MPC member Paul Fischer said on Thursday that interest rates would be kept low for the time being, as it helped boost growth in the UK.
Fischer, who is also BoE's executive director for markets, pointed out that inflation remained weak, creating at present unfavorable conditions for a tightening of monetary policy.
"My own judgment is that we are still some way off the point where it is appropriate to start raising Bank Rate and that when it is time, it would be appropriate to do so only gradually," the MPC member said.
He emphasized that a fall of UK unemployment to the 7% threshold set by the BoE wouldn't be a automatic trigger for a rate hike, as the economy should be given time to grow strongly.
Fischer, who is also BoE's executive director for markets, pointed out that inflation remained weak, creating at present unfavorable conditions for a tightening of monetary policy.
"My own judgment is that we are still some way off the point where it is appropriate to start raising Bank Rate and that when it is time, it would be appropriate to do so only gradually," the MPC member said.
He emphasized that a fall of UK unemployment to the 7% threshold set by the BoE wouldn't be a automatic trigger for a rate hike, as the economy should be given time to grow strongly.