UK’s faulty labour market means rates must stay high – BoE’s Haskel

LONDON (Reuters) – Bank of England interest rate-setter Jonathan Haskel said on Friday that Britain’s labour market was not functioning as well as it should, which would keep interest rates high.

Haskel said the ability of the labour market to match workers with vacancies appeared to have deteriorated.

“With an impaired labour market, interest rates would have to remain higher for longer than would otherwise be the case,” he said in comments he was due to make at a conference.

Haskel was one of three members of the BoE’s Monetary Policy Committee who voted for a rate hike on Thursday. A majority of six decided to keep Bank Rate on hold.

(Writing by William Schomberg, editing by Andy Bruce)