BOE deputy governor explains UK economy

Bank of England's (BOE) deputy governor Sir John Cunliffe reiterated views of Governor Mark Carney that rate hike would most likely next step, to be taken by BOE, however it would be gradual and limited compared to historical standards.

His explanation about the health UK economy provides clues to how the bank is perceiving things -

• According to Mr. Cunliffe, UK economy registered sharpest drop in unemployment in 40 years.
• Pay rise has returned in the economy and pay growth is rising much faster than anticipated.
• Productivity has started to reverse course and turn higher.

From his view it can be said. Bank of England sees UK economy to be robust and BOE members in their testimony to congress have said that impact of China over UK's economy could be limited and may not impact rate decision much.

So what is preventing BOE from rate hike - views from Mr. Cunliffe explains this too

• BOE officials are not seeing any price pressure buildup.
• Though blames disinflationary pressure coming from abroad.

Pound however has taken a hit today against Dollar, trading at 1.551, down -0.12% so far today.