LONDON (Reuters) - Upside risks to British wage growth and inflation have grown more distant, Bank of England policymaker Ian McCafferty said in an interview published on Monday, after dropping his lone call to hike interest rates earlier this month.
“The upside risks to wage costs and inflation haven’t disappeared by any sense, but they have been pushed further out,” McCaffery told the Wall Street Journal.
He added that the Bank of England was not “out of ammunition” if it needed to fight a renewed downturn by cutting interest rates or restarting its bond-buying program.
The WSJ reported him emphasizing that officials still expected the next interest rate move would be up.
Reporting by Andy Bruce, editing by David Milliken