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Higher inflation and weaker growth complicate BoE outlook - McCafferty
December 20, 2016 / 11:46 AM / a year ago

Higher inflation and weaker growth complicate BoE outlook - McCafferty

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.

A man walks into Bank Underground station outside the Bank of England in the City of London, Britain, November 3, 2016. REUTERS/Peter Nicholls/File Photo

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

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