Comments from Weale in the FT

"The Bank of England should be ready to raise borrowing costs as early as August" - Financial Times, citing Weale interview.

Weale is a BOE hawk:

  • Says he was one of two MPC members on the brink of voting for June hike
  • "If you'd asked me last autumn how rapidly I thought wages might pick up, looking at the most recent numbers, the movement seems to have been a bit faster than that," he said.
  • Breathing space from oil drop now coming to an end
  • Voting for July 8 hike would be too early
  • It's "a bit of a pity" people now see small rises as important
  • "I met businessmen who say they would find life impossible if the interest rate went up and I have said things like, 'if your business is successful at half a point [interest rates] it is a bit difficult to see it would be ruined at three-quarters of a point," he added.

Not a big surprise to see hawkish comments from Weale but it doesn't take a weather man to tell you which way the wind is blowing in the UK.