February 12, 2018 / 5:19 PM / 9 months ago

Bank of England rate outlook could be tested by Brexit: McCafferty

Ian McCafferty, Monetary Policy Committee member of the Bank of England speaks during a Reuters interview at the Bank of England in London February 24, 2014. REUTERS/Suzanne Plunkett

LONDON (Reuters) - The Bank of England’s expectation that it will raise interest rates again could be knocked off course by the approach of Brexit and its impact on confidence in Britain, BoE interest-rate setter Ian McCafferty said on Monday.

“Our decisions are going to be based ... on how the economy evolves. We have a good deal of uncertainty at the moment. So far the economy is holding up well. The global economy in particular is doing better than we and others had expected six or 12 months ago,” McCafferty said on LBC radio.

“But at the same time we do face a great deal of uncertainty around the Brexit negotiations and how that might affect both business and consumer confidence. So we will be watching the data and making our decisions on a month by month basis.”

Last week the BoE said it expected to raise interest rates earlier and by more than it had thought in late 2017, because of the strength of the global economy and signs that British pay growth was picking up speed.

Reporting by William Schomberg, editing by David Milliken

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