British wage growth has turned around - Bank of England's Forbes
LONDON (Reuters) - British wage growth has turned around and will feed through to higher inflation at some point, meaning the Bank of England will have to start thinking about raising interest rates, policymaker Kristin Forbes said in an interview published on Friday.
Monetary Policy Committee member Forbes said "strong underlying fundamentals" in the economy would mean the BoE would need to start thinking about raising interest rates, although the timing would depend on what happens with wages.
"Wage growth has turned around and we expect it to continue to strengthen. At some point that will feed through into higher inflation," Forbes told the Yorkshire Post newspaper.
She also said there was no evidence Britain was falling into a period of deflation, when expectations of falling prices become entrenched.
(Reporting by Andy Bruce, Editing by William Schomberg and Clarence Fernandez)
