-Bank of England policymakers set out views on rates outlook in minutes of June meeting

Source Summary

/ParagraphParagraph xml:space="preserve" LONDON, June 18 (Reuters) - The Bank of England left interest rates on hold at 3.75% on Thursday after a split 7-2 vote by its Monetary Policy Committee./ParagraphParagraph xml:space="preserve" Below are key excerpts from comments ​by individual members of the MPC about their latest decision./ParagraphParagraph xml:space="preserve" VOTED TO MAINTAIN BANK RATE ‌AT 3.75%/ParagraphParagraph xml:space="preserve" GOVERNOR ANDREW BAILEY/ParagraphParagraph xml:space="preserve" "There has been a marked fall in energy prices in recent days, reflecting progress on talks involving U.S. and Iran. But the situation remains unpredictable, and there is clearly a risk that energy prices remain ​elevated for an extended duration."/ParagraphParagraph xml:space="preserve" "I am content at the present time with holding, while ​accepting that risks to inflation and interest rates are on the upside, as reflected ⁠in the upward slope in the sterling yield curve, which appears to be accounted for more by ​risk premia than expected rates. /ParagraphParagraph xml:space="preserve" "I would respond promptly to any signals that an extended period of ​elevated energy prices could be leading to stronger possible second-round effects."/ParagraphParagraph xml:space="preserve" DEPUTY GOVERNOR SARAH BREEDEN/ParagraphParagraph xml:space="preserve" "I remain committed to acting early and decisively should material second-round effects become likely."/ParagraphParagraph xml:space="preserve" /ParagraphParagraph xml:space="preserve" EXTERNAL MPC MEMBER SWATI DHINGRA/ParagraphParagraph xml:space="preserve" "If the situation (on price pressures) ​were to worsen, this may warrant some further tightening. But I do not see a compelling case ​to increase Bank Rate pre-emptively without new evidence of more intense first-round shocks."/ParagraphParagraph xml:space="preserve" DEPUTY GOVERNOR CLARE LOMBARDELLI/ParagraphParagraph xml:space="preserve" "Were inflation signals ‌to ⁠indicate inflation would persist above target, this would require policy to respond more forcefully to inflation pressures."/ParagraphParagraph xml:space="preserve" EXTERNAL MPC MEMBER CATHERINE MANN/ParagraphParagraph xml:space="preserve" "Why wait (to hike rates)? Research shows that a forceful Bank Rate decision can have a quick effect on inflation and inflation expectations. So I have time to continue to evaluate measures ​of inflation expectations."/ParagraphParagraph xml:space="preserve" /ParagraphParagraph ​xml:space="preserve" DEPUTY GOVERNOR DAVE RAMSDEN/ParagraphParagraph ⁠xml:space="preserve" "I continue to place about equal weight on Scenarios A and B materialising after the summer, but even less weight than before on Scenario C."/ParagraphParagraph xml:space="preserve" "Holding Bank ​Rate at this meeting keeps options open."/ParagraphParagraph xml:space="preserve" EXTERNAL MPC MEMBER ALAN TAYLOR/ParagraphParagraph ​xml:space="preserve" "Absent worse news, ⁠I cannot see a case for tightening now, and an active hold is reasonable. If the conflict resolution holds, and risks diminish, lower rates could be preferred."/ParagraphParagraph xml:space="preserve" VOTED TO RAISE BANK RATE TO 4%/ParagraphParagraph xml:space="preserve" EXTERNAL MPC ⁠MEMBER MEGAN ​GREENE/ParagraphParagraph xml:space="preserve" "A proactive hike now in Bank Rate should help ​anchor inflation expectations."/ParagraphParagraph xml:space="preserve" /ParagraphParagraph xml:space="preserve" CHIEF ECONOMIST HUGH PILL/ParagraphParagraph xml:space="preserve" "(A rate hike) would establish a stance of monetary policy that is well-placed to ​address the significant uncertainties the MPC faces." (Writing by Andy Bruce; editing by David Milliken) (([email protected]))/ParagraphParagraph xml:space="preserve" Keywords: BRITAIN BOE/QUOTES/ParagraphParagraph xml:space="preserve"