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Vlieghe also said he would want to see the impact on the economy
from the government's withdrawal of its huge pandemic support
programme for the economy over the coming months, including its
wage subsidy furlough scheme.
"For all these reasons, I think it will remain appropriate to
keep the current monetary stimulus in place for several quarters
at least, and probably longer," Vlieghe said in a speech to the
London School of Economics on Monday.
"And when tightening does become appropriate, I suspect not much
of it will be needed, given the low level of the neutral rate."
Two BoE officials - Deputy Governor Dave Ramsden and Michael
Saunders - said this month the time for tighter policy might be
nearing, raising the prospect of the BoE curtailing its
bond-buying programme sooner than planned.
But another Monetary Policy Committee member Jonathan Haskel
said last week that scaling back support for the economy was not
the right option for the foreseeable future and Catherine Mann -
who joins the BoE as a policymaker on Sept. 1 - warned against
curbing stimulus too soon.
Comments by Deputy Governor Ben Broadbent on Thursday further
diminished the prospect of an imminent move by the BoE when he
said a current spike in prices was unlikely to create
longer-term inflation pressures.
The BoE begins its latest monetary policy meetings later this
week before announcing its decisions alongside fresh forecasts
for the economy on Aug. 5.
Financial markets currently price in a first rate rise by the
BoE - to 0.25% from 0.1% - by August next year.
The value of the pound edged down and British government bond
prices rose after Vlieghe's speech was published on Monday.
(Reporting by William Schomberg and Kate Holton; editing by
Michael Holden)
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