New BoE deputy governor hints at interest rate rise

clock

The Bank of England's new deputy governor, Minouche Shafik, has hinted to MPs that interest rates could be about to go up, the FT reports.

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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

FCA's Rathi addresses Autumn Budget market abuse concerns

FCA's Rathi addresses Autumn Budget market abuse concerns

Pens open letter to Treasury Committee

Isabel Baxter
clock 04 December 2025 • 2 min read
More tax, less shelter: A slow-burn Budget for savers and investors

More tax, less shelter: A slow-burn Budget for savers and investors

'The Budget documents make for sobering reading for those trying to build up their wealth'

Laith Khalaf
clock 04 December 2025 • 3 min read
OBR 'deeply regrets' early release of Budget document

OBR 'deeply regrets' early release of Budget document

Mistaken release of Budget documents forced Richard Hughes' resignation

Linus Uhlig
clock 02 December 2025 • 3 min read