Thursday September 4, 11:08 AM
FACTBOX-Bank of England policymakers' recent comments
LONDON , Aug 29 (Reuters) - The Bank (TBHS - news) of England is widely expected to leave interest rates on hold at 5 percent for the fifth month running next Thursday as it balances the risk of recession with that of persistently high inflation.
Following are comments made by Monetary Policy Committee members since its last policy meeting.
DAVID BLANCHFLOWER, INTERVIEW WITH REUTERS, AUG 28
Blanchflower said two million Britons may be out of work by Christmas and big cuts in interest rates were needed immediately to stop the economy heading into a deep and prolonged slump.
'The fears that I have expressed over the last six months have started to come to fruition,' he told Reuters. 'I've obviously voted on quite a number of occasions now for small cuts but we need to act and we probably need to act in larger amount than that.'
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TIMOTHY BESLEY, INTERVIEW WITH SUN NEWSPAPER, AUG 19
Besley said monetary policymakers faced a difficult task in trying to help the economy while also keeping inflation in check.
'This spiral has to be nipped in the bud and that means having interest rates at a suitable level until the threat of higher inflation has passed,' he said.
'All being well, inflation will fall again next year and will be much closer to the two percent target by the end of 2009. But that will only happen if people don't chase inflationary wage increases.'
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MERVYN KING, AUGUST INFLATION REPORT NEWS CONFERENCE, AUG 13
The Bank of England raised hopes of an interest rate cut before the end of the year as it forecast the current record-breaking spike in inflation would reverse sharply as the economy grinds to a halt.
'The adjustment of the UK economy to higher commodity prices and a more realistic pricing of credit will be painful. The next year will be a difficult one,' King said.
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FOR CHRONOLOGY OF VOTING PATTERN OF MPC MEMBERS:[BOE/VOTE]
ALL REUTERS STORIES ON BOE: [BOE-UKI] Keywords: BRITAIN BANK/COMMENTS
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