BoE known hawk Ian McCafferty urged his fellow policymakers not to “dally” when it comes to tightening policy modestly.
He is seeing no labor market slack in the economy. In addition, there are modest upside risks to wage growth forecasts presented in the February Quarterly Inflation Report. He added that “It’s not wages suddenly bursting away, but it gives you a modest upside risk.” Also, McCafferty is concerned on whether import price inflation would fade as the central bank forecasted.
On the other hand, he acknowledged that Brexit uncertainty will be a permanent feature of the economic landscape of the UK. While it may hamper long term investments, the impact on short term projects or exports would be small.