BOE Broadbent: Need Couple Of Hikes To Get Inflation On Track

By David Robinson

     LONDON (MNI) - Bank of England Deputy Governor Ben Broadbent said,

following Thursday's 25 basis point Bank Rate rise, that it would require a

couple more rate increases to get inflation back to target.

     "Given our outlook currently we anticipate we need a couple more rate rises

to get inflation back on track while at the same time supporting the economy,"

Broadbent told the BBC Radio 4 Today Programme

     "That is not a promise, and it never could be a promise," Broadbent added.

     The November Inflation Report was conditioned on market rate expectations

for Bank Rate to rise to 1% towards the end of the three year forecast horizon.

Broadbent's two hikes would fit this profile.

     Broadbent was asked why people should trust the Bank as Governor Mark

Carney had previously indicated that the MPC could hike but had not delivered

and it had also overestimated the negative impact of the vote to leave the EU.

     Broadbent said that Carney had only ever said that a leave vote could

result in a technical recession, not that it would, and he noted BOE policy

guidance is always conditional.

--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com

[TOPICS: M$B$$$,M$E$$$,M$$BE$]