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BoE's Cunliffe: Markets pushing back BoE rate hike bets into 2019 not justified
[BRUSSELS] Bank of England Deputy Governor Jon Cunliffe said on Thursday he had seen nothing to justify market moves in the last month that have pushed back expectations for the BoE's first interest rate hike towards the end of the decade.
Cunliffe said market pricing of the BoE's first rate hike had been pushed out by two years compared with only a month ago, into the second quarter of 2019 . "I can't see anything in the economic news that would lead to a shift like that," Cunliffe said at an event in Brussels held by the Swiss Finance Council.
He added it was unclear why there was such a disconnect between the economic data and the yield curve, but that it could reflect markets viewing low growth and low inflation as a'new normal'.