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BoE’s Forbes weighs up varying policy paths in US and UK

Fed may be more likely to tighten policy due to lack of ‘flexibility’

kristin-forbes-mpc
Kristin Forbes
Bank of England

The Federal Reserve's inability to address overheating in specific sectors may be one reason why it tightens monetary policy sooner than the Bank of England (BoE), Kristin Forbes, a member of the BoE's monetary policy committee, said today (January 26).

Speaking at an event at the House of Commons, Forbes noted "striking similarities" between the UK and US labour markets, particularly their low levels of slack. In doing so, she raised the question of why the BoE had not raised interest rates in

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