Economics
Carney Steps Up Bank of England Rate Hike Timetable for Brexit-Hit U.K.
- Economy has limited spare capacity, at risk of overheating
- Rate rises likely to come sooner and be larger than expected
This article is for subscribers only.
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.