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28 Jan 2015
In no rush to raise rates – BOE’s Haldane
FXStreet (Mumbai) - In an interview with a British daily, the Bank of England (BOE) Chief Economist and a member of the central bank's rate-setting committee Andrew Haldane said that interest rates in the UK are going to rise slowly in order to allow a gradual economic recovery.
Key Quotes:
"in no rush to raise rates, the recovery is taking hold nicely, the last thing we want to do is knock the stuffing out of that … At the last meeting we(Monetary Policy Committee) voted unanimously to hold rates where they are."
"historically low and they won’t stay like that forever but when that rise comes it is going to be very gradual," specifying that the hikes could be "half a percent a year for several years."
"I think that is what businesses want to hear, we want to speak directly to businesses, those who are planning to borrow and invest … It is a message to them that they are reasonably safe to do so with the knowledge we are not about to start raising rates,"
"We are clear that even when we are through this adjustment and rates are starting to rise we don’t really see rates getting back to those levels. Maybe the new normal for rates might be 2% or 3%, maybe 4%,"
Key Quotes:
"in no rush to raise rates, the recovery is taking hold nicely, the last thing we want to do is knock the stuffing out of that … At the last meeting we(Monetary Policy Committee) voted unanimously to hold rates where they are."
"historically low and they won’t stay like that forever but when that rise comes it is going to be very gradual," specifying that the hikes could be "half a percent a year for several years."
"I think that is what businesses want to hear, we want to speak directly to businesses, those who are planning to borrow and invest … It is a message to them that they are reasonably safe to do so with the knowledge we are not about to start raising rates,"
"We are clear that even when we are through this adjustment and rates are starting to rise we don’t really see rates getting back to those levels. Maybe the new normal for rates might be 2% or 3%, maybe 4%,"