Former BOE Deputy Governor John Gieve said it's time to reverse Brexit cut
The predicted economic slump after the Brexit vote hasn't materialized and that means there is a "very strong case" to reverse the emergency rate cut after the vote.
Gieve said Brexit will hold down growth for years but said "I don't think in itself it should be causing the Bank to hold rates down to pump up demand."
"I think there is a very strong case for reversing the quarter percentage point cut from last year. The rationale behind that was there was a risk that the shock of the vote would drive [demand] down excessively in the short term and the Bank tried to prevent that.
"Perhaps they did, perhaps it wasn't necessary. But either way there hasn't been a shock to demand."
Today's UK construction PMI didn't bode well for hike hopes but the pound has recovered.
