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Rate hike to ‘occur sooner rather than later’ – BOE’s Forbes

FXStreet (Mumbai) - Bank of England’s (BOE) MPC member Kristin Forbes is now crossing wires stating that the interest rate in the UK is likely to rise sooner than later as the recent negative developments surrounding the global economy are overstated and that her outlook on the UK rate expectation remains unadjusted.

Key Quotes:

"Although the risks and uncertainties in the global economy have increased, the widespread pessimism is overstated."

"There are still substantial benefits and opportunities for businesses to expand around the world – including in many emerging markets, much of the negative news that dominates headlines today should prove temporary."

"The UK currently has less direct export exposure to emerging economies" and "if growth in the UK’s two most important trading partners, the US and euro area,
continues to meet or exceed expectations for 2015, while growth in emerging economies slows moderately, the UK could be in the enviable position of facing stable growth in its export markets despite a broader slowing in the global economy."

"As a result, despite the 'doom and gloom' sentiment, the news on the international economy has not caused me to adjust my prior expectations that the next move in UK interest rates will be up and that it will occur sooner rather than later."

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