Bank of England deputy vows to 'tread carefully' on interest rates

Minouche Shafik says she will not vote for a rate rise until she is convinced wage growth is well established

The Bank of England deputy governor, Minouche Shafik, has said she will not vote for an interest rate rise until she is convinced wage growth has recovered.

In the latest sign from policymakers that borrowing costs will remain on hold well into 2016, Shafik noted signs that the rate of earnings growth in the UK had "levelled off" recently and that other factors were also keeping inflation low, such as the strong pound and a drop in commodity prices.