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LONDON (Reuters) - Higher inflation, weaker growth and a likely hit to the supply side of Britain's economy after June's vote to leave the European Union complicate the outlook for Bank of England policy, rate-setter Ian McCafferty said on Tuesday.
McCafferty also repeated the Bank's view that interest rates are as likely to rise as fall, after the Monetary Policy Committee shifted to a neutral policy stance last month.
"This confluence of trends - rising inflation, initial demand resilience but a slowdown in growth in prospect and a likely hit to supply over the longer term - provides a challenging background for policy setting," McCafferty said in a speech published on Tuesday.
Reporting by Andy Bruce, editing by David Milliken