Business

Rate-setter wants growth to stabilise

Gertjan "Jan" Vlieghe Image copyright Bank of England

The newest member of the Bank of England's Monetary Policy Committee (MPC) has said growth and wages are the things that will persuade him it is time for an interest rate rise.

Gertjan "Jan" Vlieghe, who joined the rate-setting committee in September, was speaking to the Sunday Times.

He said that he wanted economic growth to "stabilise, or even pick up a bit" before rates rise.

He also wanted a clearer "direction of travel" towards higher growth in wages.

The job of the MPC's nine members is to set interest rates at a level that will keep the rate of inflation close to the target of 2%.

Mr Vlieghe said he was "relaxed" about waiting a little longer before starting to raise rates and that he expected rates to remain lower in the long term as a result of continuing high debts and demographics.

The Bank of England's key interest rate has been at its record low level of 0.5% since early 2009.

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