It's not the right time to raise interest rates, BoE's Cunliffe says

It's not the tight time for a hike in Bank Rate, the Deputy Governor for Financial Stability said.

In remarks to the BBC, the Monetary Policy Committee's Sir Jon Cunliffe said he preferred to see how inflation behaved before deciding on an interest rate increase.

He was also keen to see if greater investment and stronger exports took up the slack from weaker household consumption.

Speaking to BBC Radio 5, he said: "We do have to look at what's happening to domestic inflation pressure, and I think that, on the data we have at the moment, gives us a bit of time to see how this evolves."

Nonetheless, he admitted that CPI running ahead of the Bank's target level was "not a comfortable place" for any member of the MPC.

Yet it was more important to see how much of that was the result of internal price pressures and how much was a by-product from weakness in Sterling.

As of 1107 BST, the yield on the benchmark 10-year Gilt was climbing six basis points to 1.15%, while the pound was little changed versus the dollar, drifting lower by 0.01% at 1.2814.