The Bank’s deputy governor, Ben Broadbent, said the UK economy warranted higher interest rates. Photograph: Alicia Canter/The Guardian

Senior Bank of England officials gives warning due to several interest rate hikes

Despite the global slowdown in trade and falling interest rates in the US, three members of the Bank of England’s monetary policy committee have warned the UK to stay on track to raise interest rates over the next couple of years.
According to Ben Broadbent, the deputy governor, in early May the Bank’s health check on the UK economy, showed warranted higher rates than the financial markets currently expect. He also added that there was no reason to alter the Bank’s outlook when its monetary policy committee.

Broadbent told a parliamentary committee that Interest rates would have to rise a little more than what was in the curve of the forecast. The MPs financial market investors disagreed with the Bank’s outlook, however, Broadbent was untroubled by the deep uncertainty about the changes that Brexit could change significantly. 

Another MPC member, Gertjan Vlieghe challenged the benign forecast at an event in London. Vlieghe said that the news since May has been a little disappointing in terms of both the global and domestic downside risks and they have both intensified.

The trade and investment of the World Bank have a slowdown forecast which will push down global GDP growth to 2.6% this year. Vlieghe’s said that the Bank’s governor, Mark Carney is more likely to be supported by other committees to a potential rate rise from the current 0.75%.

Source: https://www.theguardian.com/business/2019/jun/11/senior-bank-of-england-officials-warn-several-interest-rate-rises