BoE's McCafferty Says U.K. Has Room To Grow Before Rates Rise
2014-02-19 10:55:56
The U.K. has scope to expand further before the Bank of England would need to raise interest rates, Monetary Policy Committee member Ian McCafferty told LBC radio on Tuesday.
He said the risk of deflation is "pretty minimal." The BoE will lift interest rates only gradually when it does eventually hike it from the current 0.50 percent.
The inflation fell below the 2 percent target in January, for the first time since November 2009. In the quarterly report, the bank suggested that the interest rate is set to rise only in the second quarter of 2015.
On housing market, McCafferty said despite rising house prices the market is still under control.