LONDON (Reuters) - British interest rates could eventually rise back to about 4 or 5 percent if inflation falls to the Bank of England’s target and economic growth picks up, a top official at the Bank of England said on Thursday.
Paul Fisher, a member of the Bank’s Monetary Policy Committee, stressed the BoE was not planning to raise interest rates any time soon.
“Eventually, if we get inflation on target at 2 percent and economic growth at say 2.5 percent, you might expect interest rates to be in the 4-5 percent range. That would be more normal,” Fisher told BBC radio.
On Wednesday, the BoE raised its forecasts for economic growth and brought forward the date when it expects unemployment to fall to the 7 percent level at which it has said it would consider whether to raise interest rates.
(The story has been filed again to correct title of Fisher in the second paragraph and state that he is not a BoE deputy governor.)
Reporting by William Schomberg; Editing by John Stonestreet