Carney Steps Up Bank of England Rate Hike Timetable for Brexit-Hit U.K.

Mark Carney said U.K. interest rates may need to rise at a steeper pace than previously thought to prevent the Brexit-weakened economy from overheating. The Bank of England lifted its forecasts for economic growth Thursday and said that inflation is projected to remain above the 2 percent target under the current yield curve, which prices in about three quarter-point hikes over the next three years. The governor noted that a key challenge is limited capacity.

“It will be likely to be necessary to raise interest rates to a limited degree in a gradual process but somewhat earlier and to a somewhat greater extent than what we had thought in November,” Carney said in a press conference. “Demand growth is expected to exceed the diminished supply growth.” …
Read more : Bloomberg, 08.02.2018