Bank of England policy maker Ian McCafferty said business investment has been “feeble” and won’t pick up until the end of the year, underlining the case for officials to keep their key interest rate at a record low.
Bank of England Markets Director Paul Fisher said there’s no immediate need to increase interest rates, as he added his voice to officials’ defense of the loose policy they want to maintain under forward guidance.
Bank of England policy maker Ian McCafferty said Chancellor of the Exchequer George Osborne must maintain his fiscal squeeze as any easing could push up gilt yields and hurt the central bank’s efforts to boost growth.
Ian McCafferty, chief economic adviser at the Confederation of British Industry, will join the Bank of England’s Monetary Policy Committee as the panel regains a business specialist after a year without one.
Bank of England Governor Mark Carney said there’s “no immediate need” to increase borrowing costs and indicated a debate has begun on forward guidance after U.K. unemployment fell faster than anticipated.