ECONOMISTS’ VIEWS: IS AN INTEREST RATES RISE IMMINENT?

 
Julian Harris
Follow Julian
VICKY PRYCE | FTI CONSULTING
"The MPC is getting nearer a rise in interest rates. This is inevitable eventually. But it is not clear that recent economics news has made a rate rise more imminent. The data on input prices will have encouraged the hawks. But the Q4 GDP and labour market figures will have emboldened the doves."

ALAN CLARKE | BNP PARIBAS
"The Bank’s new forecasts took us a step closer to the first interest rate hike. But we will need to see surprisingly strong growth or higher inflation for a rate hike in the next few months. Although the inflation report didn't rule out a hike as soon as May, I suspect it is more likely that the first hike comes in August."

PHILIP BOOTH | INSTITUTE OF ECONOMIC AFFAIRS
"It is likely that the Bank of England will edge towards a rate rise within the next three months. The hawks will become more hawkish and those who are in two minds will become concerned by the dogged persistence of inflation. Interest rates are now 3.5 per cent below the rate of inflation and this is not sustainable."