BoE's Haskel: Current data justifies looser monetary policy

Current data justified a looser monetary policy and cutting interest rates now would be insurance against rates getting stuck near zero in the future, argued Bank of England policymaker Jonathan Haskel while explaining why he voted for a rate cut at the BoE's last meeting.

"The effect of unconventional policies such as QE is much more uncertain than for traditional tools," Haskel added. "Downside risks linger over BoE forecasts, Brexit uncertainties may become entrenched and the world economy could weaken."

The GBP/USD pair retreated slightly from session highs after these comments and was last seen trading at 1.3040, adding 0.25% on the day.

Regarding a possible change in his policy outlook, "a slow and gradual rise in the bank rate may be needed if the path to post-Brexit EU trade agreement is smoother than expected," Haskel said.