BOE’s Shafik says 0.5% is not the new normal

FXStreet (Mumbai) - The Bank of England (BOE) Minouche Shafik backtracked a little from her slightly dovish comments earlier by stating that 0.5% interest rate is not the new normal and the firms should not plan for rates to stay at 0.5%.

She expects to see wage growth 2-3 percentage points above productivity growth and said the credit conditions have improved significantly.

Shafik sees rates settling around half of the 5% historical average.