The Bank of England’s deputy governor has said he is “not ready” to vote for an interest rate rise, meaning the chances of it happening have fallen.
This news sent the value of the pound falling to 1.1187 against the euro earlier today (12 July) – its lowest level since last November.
Speaking to Aberdeen’s The Press and Journal newspaper, Ben Broadbent said there were currently too many “imponderables” in the British economy.
He cited the mood of business as a factor in his decision, with many firms still nervous about their prospects in a post-Brexit world.
Mr Broadbent said: “In my opinion it is a bit tricky at the moment to make a decision [to raise rates]. I am not ready to do it yet.”
The deputy governor was seen as a swing vote on the Bank of England’s monetary policy committee.
In its June meeting the MPC voted five to three against raising interest rates – the closest vote since 2011.
But Andy Haldane, the Bank’s chief economist, has since revealed he would consider voting to raise rates.
If the MPC was split four to four then the Bank’s governor Mark Carney, who is expected to vote against a rate rise, would have the casting vote.
Following sterling’s dip earlier today it regained these losses on the back of the publication of figures which showed the unemployment rate fell to its lowest level since 1975.
damian.fantato@ft.com
