New BoE deputy governor hints at interest rate rise

She made the comments while being grilled by MPs about her previous experience in economics. Shafik said ensuring a smooth exit from the very low interest rate environment would be one of her biggest challenges. She also it is expected the bank would narrow its estimate of the spare capacity in the economy from a previous range of 1-1.5% of GDP, according to the FT. It explained this adds to signals from the BoE that interest rate rises may happen soon. Shafik said: “If we can start to see improvement in productivity numbers, rates can stay lower for longer. If we don’t we’ll be facin...