MNI BRIEF: BOE Haskel - No Scope For Rate Cuts Any Time Soon

Bank of England Monetary Policy Committee member Jonathan Haskel echoed Governor Andrew Bailey in pushing back against market pricing suggesting that the MPC could start to ease policy in the near future.

Haskel said Tuesday the current outlook provided no scope to moderate the policy rate, currently at 5.25%, any time soon, citing labour market pressures with impaired matching efficiency of the unemployed and vacancies and near non-existent productivity growth. "Rates will have to be held higher and longer than many seem to be expecting," he said.

Haskel, in the minority for a rate hike at the November meeting and while his speech makes the case forcefully for high-for-long rates he did not explicity advocate further tightening and noted inflation expectations had eased -- suggesting that he may not be wedded to his previous call for rate hikes.