MNI BRIEF: BOE Broadbent: Tightening Impact Clear But Lagged

There are clearsignsthatthemonetarypolicytighteningishavingsomeeffect, with unemployment beginning to rise and demand, which had held up better than expected, softening, Bank of England Deputy Governor Ben Broadbent said at an ECB conference Thursday.

Broadbent said it was an open question, however, whether the full effects of policy tightening had been delayed or whether they would be smaller than expected. The popularity of fixed rate mortgages compared to the past had contributed to a slower pass through from rate hikes and "consumption has been relatively weak," he said, but there were also signs of resilience.

Broabent said one surprise has been the "pockets of strength" in the UK economy, such as business services, which have not been rate sensitive, and the fact fact the US has not slowed in the same way as other European economies was an upside risk.