Gertjan Vlieghe, a member of Bank of England’s (BoE) Monetary Policy Committee (MPC), said yesterday that he would vote for a cut in the interest rate at the central bank’s next meeting, which is scheduled for January 22.
He said the UK economy had to show clear signs of improvement in order for him to change his mind.
“I really need to see
an imminent and significant improvement in the UK data to justify waiting a
little bit longer,” Vlieghe told
the Financial Times.
However, according to data released by the Office for National Statistics (ONS), the UK GDP declined by 0.3% in November, while economists expected a flat reading. Meanwhile, the industrial production tumbled 1.7% for the month, and the dominant services sector contracted 0.3%.
Thus, Vlieghe will likely vote for a rate cut. His comments come after other BoE policymakers, including Governor Mike Carney, revealed that they were ready to consider a rate cut from 0.75% to 0.50% if the economic weakness persists.
The first BoE official to break the ice was the governor
himself, who surprised investors last Thursday by hinting to the central bank’s
easing plans.
Silvana Tenreyro followed on Friday, saying that she was also thinking about supporting a rate cut, but at a later date in 2020.
On Monday, the British pound had its fifth consecutive bearish session.