BOE's Cunliffe Says U.K. Price Pressures Buy Time on Rates
- Deputy Governor says inflation driven weakness in pound
- Comments follow some officials’ calls for a rate increase
Carney Says May Be Necessary to Remove Some BOE Stimulus
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Bank of England Deputy Governor Jon Cunliffe helped draw the battle lines for the August interest-rate decision, saying that policy makers have time before they need to hike.
While some members of the BOE’s rate-setting committee have argued that consumer-price inflation of 2.9 percent means an increase in borrowing costs from a record-low 0.25 percent is required imminently, Cunliffe said that has been driven by the pound’s depreciation since the Brexit referendum and that wage pressures have remained low.