BOE's McCafferty: Market expectations of first BOE rate hike in Q2 2015 "not unreasonable"
- Risks of earlier or later rate hike by BOE "reasonably well balanced"
- Sterling strength at current level not a major problem for UK exports
- Would get more worried if sterling were to rise further
- If sterling rises more BOE would then need to consider its strength when setting future monetary policy
- Watching for inflation risks, early 2014 wage talks "quite critical"
- BOE would consider slightly earlier rate rise if inflation pressure bigger than expected
So its not coming down anytime soon.
Everything you want lies on the other side of fear.