BOE hawk Ian McCafferty comments in a speech in London
- Waiting too long to hike creates a bigger shock
- BOE should head off criticism of QE
- Public distrust of QE, if unaddressed, could limit BOE's scope for policy action
- Likely that recent downtrend in inflation will slow over the course of the year
No surprises from McCafferty's comments. He is a hawk and one of three dissenters in last week's meeting to have called for an immediate 25 bps rate hike. The market though is focused on his replacement's - John Haskel - comments which are much more dovish indicating a possible rate cut instead if the economy goes south.
