LONDON, July 16 (Reuters) - Britain's sluggish economy and labour market mean the Bank of England is less likely to have to raise interest rates to cope with the inflationary impact of the Iran war, BoE monetary policymaker Sarah Breeden was quoted as saying on Thursday.
"We have a softish economic outlook; we have slack in the labour market," Breeden told Bloomberg in an interview.
"Those two things mean that that shock is less likely to become embedded and lead to inflationary dynamics that we might need to lean against."
Breeden, who voted to keep rates on hold last month along with the majority of her colleagues in a 7-2 vote by the Monetary Policy Committee, said she would support higher borrowing costs if signs appeared of a feedback loop in prices.
(Writing by William Schomberg; editing by Suban Abdulla)