The Bank of England has signaled that interest rates may have to be raised further to bring inflation to target, but that does not mean the bank has promised to hike rates, BoE Deputy Governor Ben Broadbent said Friday.
The central bank raised the key rate to 0.50 percent from a record low 0.25 percent on Thursday, which was the first hike in a decade, in a 7-2 vote. Broadbent voted in favor of the hike.
The bank signaled that rates may have to rise twice in the three-year horizon period ending 2020.
"We anticipate we'll need may be a couple more rate rises to get inflation back on track while at the same time supporting the economy," Broadbent told the BBC Radio 4's Today Programme.
"That is not a promise and it never could be a promise and that's not what the governor said yesterday either," he added.
Broadbent also said that the latest rate hike will cause some pain for homeowners and urged to view the move in context.
The hike was moderate and the interest payments on debt were still at record lows, the policymaker pointed out.
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