June 11, 2019 / 10:32 AM / 5 months ago

UK rates likely to need to rise faster than market expects - BoE's Broadbent

FILE PHOTO: Deputy Governor of the Bank of England Ben Broadbent listens to a question during a Reuters Newsmaker event at Canary Wharf in London, Britain November 18, 2015. REUTERS/Neil Hall/Files

LONDON (Reuters) - British interest rates are likely to need to rise slightly faster than markets expect if Brexit goes smoothly and the economy grows as expected, Bank of England Deputy Governor Ben Broadbent said on Tuesday.

“Were the economy to develop in line with our projection, and taking as given other asset prices in the forecast, interest rates would probably have to rise by a little more than what was in the curve at the time of the forecast,” Broadbent told a parliament committee, echoing recent central bank language.

Financial markets currently price in a greater chance of a cut to interest rates than a rise over the next 12 months.

Reporting by David Milliken; Editing by Catherine Evans

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