LONDON (Reuters) - The Bank of England will have to move more quickly on interest rates if it sees that wage increases are not matched by productivity gains, Deputy Governor Minouche Shafik said in an interview published on Thursday.
"If wage increases are expected, but productivity is performing well we can wait for longer; if those wage increases are not accompanied by productivity increases, then I think we will have to move more quickly on rates because inflationary pressures will build up," Shafik told the Yorkshire Post.
"I think that's the key choice that we face," she added, in her first interview since her appointment on Aug. 1.
Shafik also described Britain's economic recovery as "encouraging" and said the economy was starting to show a shift from consumption to investment, but it has so far failed to rebalance away from domestic consumption to exports.
(Reporting by Andy Bruce; editing by Simon Cameron-Moore)