LONDON (Reuters) – Signs that British wages are beginning to grow more quickly, along with ongoing global economic strength, have bolstered the case for higher interest rates, Bank of England policymaker Gertjan Vlieghe said on Monday.
Vlieghe said there was “increased evidence that tight labor markets are finally starting to have some upward effect on wages”.
Britons’ greater willingness to borrow should also act as an indication to the BoE’s Monetary Policy Committee that rates may need to go higher, he said during an event hosted by the Resolution Foundation think-tank.
The BoE said last week that interest rates were likely to need to rise somewhat faster and to a somewhat greater extent than it had previously thought.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.