BOE's Most Dovish Member Now Sees Need for Rate Hike

The Bank of England policy maker seen as least likely to back a rise in interest rates has changed his view and now thinks a hike may be needed soon.

In a speech to economists, Gertjan Vlieghe said the U.K. economy was running through its spare capacity quicker than he had expected, while household spending was stronger.

"If these data trends of reducing slack, rising pay pressure, strengthening household spending and robust global growth continue, the appropriate time for a rise in [the] bank rate might be as early as in the coming months," he said Friday.

Mr. Vlieghe's comments followed a Bank of England statement Thursday with the same message.

But based on his previous comments, Mr. Vlieghe had been regarded as the member of the nine-strong Monetary Policy Committee most inclined to oppose a rise in the key rate from a record low of 0.25%.

Write to Paul Hannon at paul.hannon@wsj.com

The Bank of England policy maker seen as least likely to back a rise in interest rates has changed his view and now thinks a hike may be needed soon.

In a speech to economists, Gertjan Vlieghe said the U.K. economy was running through its spare capacity quicker than he had expected, while household spending was stronger.

"If these data trends of reducing slack, rising pay pressure, strengthening household spending and robust global growth continue, the appropriate time for a rise in [the] bank rate might be as early as in the coming months," he said Friday.

Mr. Vlieghe's comments followed a Bank of England statement Thursday with the same message.

Based on his previous comments, Mr. Vlieghe had been regarded as the member of the nine-strong Monetary Policy Committee most inclined to oppose a rise in the key rate from a record low of 0.25%.

Write to Paul Hannon at paul.hannon@wsj.com

(END) Dow Jones Newswires

September 15, 2017 05:26 ET (09:26 GMT)