Interest rates unlikely to go back to what once was considered normal

By: Information Daily Staff Writer
Published: Monday, October 20, 2014 - 18:12 GMT Jump to Comments

Interest rates will rise before long, but are unlikely to go back to levels once considered normal, says the former Deputy Governor of the Bank of England.

Central banks are both encouraging credit creation through monetary policy and restraining it through bank regulation, so the picture is complicated.

However, this is good moment for the British economy with growth, employment creation, and low inflation, although average wages have not been growing, which is why many people do not feel better off.

Sir John Gieve is a former civil servant, who served as Deputy Governor for Financial Stability of the Bank of England and an ex officio member of the Monetary Policy Committee from 2006 to 2009. He is Chairman of VocaLink, the main provider of payment systems in the UK.

The video was recorded at the 2014 European Conference on Banking and the Economy. ECOBATE 2014 took place in Winchester on 8 October and was organised by the Centre for Banking, Finance and Sustainable Development (CBFSD) at Southampton University, led by Professor Richard A. Werner, D.Phil. (Oxon), Chair in International Banking and Director of the CBFSD.

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