Bank of England Hints at 2016 Rate Hike as Britain’s Economy Strengthens
But weakening oil prices may cause the rate of price growth to drop below zero in the coming months, from 0.5 percent currently.
Bank of England Governor Mark Carney signaled interest rates may increase faster than investors had anticipated as Britain’s economy gathers pace.
While the BOE predicted the rate of price growth may drop below zero in the coming months from 0.5 percent currently, the Monetary Policy Committee blamed weakening oil prices and said domestic pressures are building. In its quarterly Inflation Report on Thursday, the central bank predicted inflation will be 2 percent in two years and 2.2 percent at the end of the three-year forecast period.
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