ING chief international economist James Knightley said he also believed a rise at November’s meeting of the Monetary Policy Committee tomorrow was likely but thought that it would be a one off.
Speaking at the Tesco Bank event celebrating is first year in the broker market on the 21 September, Knightley said: “Will this be a series of hikes? I suspect not.
“Inflation is only at 2.9% and is only driven by the pound’s collapse, we’re not seeing the domestic inflationary pressures coming through yet.
“I’d suggest one and done, some people are suggesting maybe two in six months, but certainly not a whole process and that is because when you speak to the BoE they are so concerned about growth because we just do not know what environment the UK economy will face in the next couple of years.”
We’ve got problems
Knightley also touched on the subject of the economy since the Brexit vote and warned that over the last three months the UK data has taken a turn for the worse over pretty much all data sources while the Eurozone was looking “stonkingly strong”.
“Things are looking tougher and economy is growing at a slower rate – it’s probably halved over last six to nine months,” he continued.
And Knightley warned: “The Pound’s collapse should make us more competitive and should boost exports – it hasn’t and that is astonishing. If we are not benefiting from the pounds’ weakness now, we’ve got problems.”