Outgoing Bank of England deputy governor Charlie Bean (is due to leave the bank at the end of June) has told Sky television on Sunday that market expectations of a rise in UK interest rates at the turn of the year are “reasonable”.
He added:
- “The market has rates going up to 2.5% over next three years. That seems like a broadly sensible judgment.”
- “It might be reasonable to think that in that long term you would go back to 5% but it’s probably quite a long way down the road.”
- “I think it will be natural either at the time the MPC (Monetary Policy Committee) raises bank rates, or some time shortly thereafter, to say ‘OK, we won’t reinvest maturing gilts'”
