Bank of England deputy governor Ben Broadbent speaks on BBC radio
- Says that equity markets didn't pay attention to the idea economic growth could generate inflation
- Path of rates now slightly higher than in November
- More confident wage growth is improving in the UK
- Rate hikes may come a little sooner, but will be limited and gradual
- Doubling of interest rates from 0.5% would not historically represent a big rise
- Does not think a couple of 25 bps increases in a year would be a great shock to the economy
- Real income growth is to return this quarter
- Thinks that UK inflation is pretty close to its peak right now
Sterling liking the comments from Broadbent, as it extends gains on the day. Cable up to session highs of 1.3951 before settling now at 1.3944.
Some strong words there by Broadbent, suggesting that the BOE will likely move more than once this year and also managing expectations of the market in saying that it will not "represent a big rise" if the BOE does do so.
But other than that, pretty much the same stuff from the BOE statement yesterday and from Carney's Q&A.
