LONDON (Reuters) – Bank of England policymaker Kristin Forbes said the latest economic data suggested Britain’s economy would grow faster than the central bank had forecast last month, with momentum potentially carrying through into 2017.
Last week the central bank said the economy was likely to have slowed less than it forecast just after June’s European Union referendum, and on Thursday Forbes said there were signs the BoE might need to revise up its longer-term forecasts in November.
“There is more momentum in the economy in the second half of this year. We’ll be starting next year on a stronger footing so there will be some automatic translation,” she said in a question and answer session after speaking at Imperial College, London.
However, she urged caution in interpreting the numbers.
“What happens further out will be critically determined by how people react to the uncertainty around the (Brexit) negotiations, and any more clarity on what economic conditions will be in the future,” she added.
In her lecture, she said she did not see a case for a further interest rate cut to help Britain’s economy, putting her at odds with most of her fellow rate-setters.
(Reporting by Helen Reid, editing by David Milliken)