UNITED KINGDOM (OBSERVATORY) – The Bank of England should not postpone the increase in interest rates, one of the regulator’s politicians said, pointing to the possibility of a faster increase in wages and problems in the global economy, Reuters reports.
Ian McCafferty told the agency that, after falling behind inflation, wage growth could be stronger than many of his colleagues thought.
“We must not give up when it comes to stricter policies,” one of the two members of the Monetary Policy Committee (MPC), who voted to raise rates last month, said in an interview with McCafferty.
In November, the Bank of England raised rates for the first time in more than a decade, saying that although the British economy demonstrates a slower growth than other developed countries, due to the Brexit vote in 2016, it is now more prone to inflation than before .
Three months later, in February, the Bank of England announced that it would probably be necessary to raise rates a little earlier and more often than previously planned, which pushed the pound sterling to growth and prompted investors to bet on a possible rise in rates in May.
McCafferty said he can not be sure whether to vote again for raising rates before the May meeting on politics, but so far there has been no data or developments around Brexit to make him think he made a mistake in March by voting for increase rate to 0.75%.