August 4, 2017 / 5:15 AM / a year ago

BoE's Broadbent says UK better placed for rate hike - BBC

LONDON, Aug 4 (Reuters) - Britain is “a little bit” better placed to cope with possible interest rate increases, Bank of England Deputy Governor Ben Broadbent said on Friday, a day after the central bank said borrowing costs may have to rise more than markets expect.

“I think there may be some possibility for interest rates to go up a little bit,” Broadbent told BBC radio.

“One shouldn’t overdo this. If and when it happens there will be a lot of talk about the first rate rise since ‘x’. But it’s just a rate rise and we got perfectly used to rate rises of this size in the past.”

The BoE has not raised interest rates for more than a decade but has signalled that it might increase borrowing costs, possibly starting in 2018, as inflation remains above its 2 percent target and unemployment is at a four-decade low.

However, the central bank also said on Thursday it was worried about the impact of Brexit on Britain’s economy, raising questions about when interest rates might actually rise. (Writing by William Schomberg; Editing by Shri Navartatnam)

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