BOE's Shafik Says Must See Faster Pay Growth Before Raising Rate
- Says markets may have mispriced path of rate increases
- BOE Deputy Governor Shafik speaks on monetary policy in London
Bank Of England Deputy Governor Nemat Shafik.
Photographer: Alessia Pierdomenico/BloombergThis article is for subscribers only.
Wage pressures aren’t yet strong enough to justify an interest-rate increase, though markets have misjudged the delay until the first move, according to Bank of England Deputy Governor for Markets and Banking Minouche Shafik.
“I will wait until I am convinced that wage growth will be sustained at a level consistent with inflation returning to target before voting for an increase. In that sense, I will proceed with caution,” Shafik said on Monday in a speech in London.