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UK wage pick-up bolsters case for rate rise: BoE's Vlieghe

Published 02/12/2018, 05:14 AM
Updated 02/12/2018, 05:20 AM
© Reuters.  UK wage pick-up bolsters case for rate rise: BoE's Vlieghe

LONDON (Reuters) - Signs that British wages are beginning to grow more quickly, along with ongoing global economic strength, have bolstered the case for higher interest rates, Bank of England policymaker Gertjan Vlieghe said on Monday.

Vlieghe said there was "increased evidence that tight labor markets are finally starting to have some upward effect on wages".

Britons' greater willingness to borrow should also act as an indication to the BoE's Monetary Policy Committee that rates may need to go higher, he said during an event hosted by the Resolution Foundation think-tank.

The BoE said last week that interest rates were likely to need to rise somewhat faster and to a somewhat greater extent than it had previously thought.

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