BoE MPC member Gertjan Vlieghe said yesterday, 1970s and 1980xs were the “unusual decades” when “interest rates were unusually high then”. Asked if interest rates might return to the levels of 4-5% before the financial crisis, he said “maybe not in my lifetime”.
“It doesn’t mean that interest rates don’t go up from current levels. It just means that when they go up, they don’t go back to 4 or 5%”, he added.
