Bank of England Broadbent: Comments on UK economy, GBP and interest rates via ForexLive

BOE deputy governor Ben Broadbent speaks in Bloomberg interview

• first rate increase shouldn't be ‘massive shock'
• says household debt hardens case for moving gradually
• raising rates would be sign economy is recovering
• sees case for raising rates earlier for gradual path
• guidance isn't ‘hard and fast,' depends on data
• rates likely to be lower than in past expansions
• says rate increases likely to be limited, gradual
• says weaker wages suggest boe underestimated slack
• slack being eaten up faster than boe forecast says some increase in wages is likely
•  possible growth in past year closer to 4% than 3%
• sees growth slowdown toward end of year, early 2015
• 3q growth forecast may be revised up marginally
• says ‘the edge is coming off' u.k. housing market
• debt level not argument for doing nothing on rates
• exchange rate result of imbalances, not the cause
•  risk of leaving move too late is faster inflation
• says pound would weaken if global growth accelerated
• says a concern growth in rest of the world is so weak
• says ‘quite possible' sterling is overvalued
• first rate increase shouldn't be ‘massive shock'

more to come

posted via ForexLive