Bank of England unlikely to raise rates only once: Vlieghe

A man speaks on his phone outside the Bank of England in the City of London, Britain, August 23, 2017. REUTERS/Hannah McKay

LONDON (Reuters) - Bank of England policymaker Gertjan Vlieghe said on Friday that British interest rates would need to rise more than once if the economy develops as the central bank expects.

“It’s obviously more than unwinding last August (when the BoE cut rates). We are making that judgment over a three-year period, so it will depend on how the data evolves,” Vlieghe told reporters after giving a speech.

The BoE has previously said interest rates could rise to a greater degree than expected by investors. On Thursday it said rates were likely to rise in the coming months, if pressure on inflation continues to build.

Asked about the impact that Thursday’s announcement had on investors, who pushed up sterling and sold government bonds, Vlieghe said the message from the BoE represented an evolution, not a sudden shift, from its previous announcements.

Reporting by David Milliken; Writing by William Schomberg