In his first public speech since joining the Monetary Policy Committee, Gertjan Vlieghe has said that he is prepared to be “patient” before voting for an increase in interest rates. He has warned that we must “be prepared for the possibility that real interest rates will remain well below their historical average for a very long time”.
The rate setter has said that he needs to see inflation in a medium term upward trend before he would reconsider.
As of March, the the Base Rate will have remained at 0.5% for a total of seven years. Since then, only one member has voted for an increase during one of their meetings.