Bank of England governor Mark Carney has said he expects interest rate increases in the UK to be "gradual" and "limited" as he estimated inflation would remain above 2% for the next three years.
In a speech to the International Monetary Fund (IMF)in Washington DC, Carney said there would likely be "some withdrawal of monetary stimulus" in order to bring inflation back to the BoE's 2% target, according to the BBC. Inflation beat expectations in August rising 0.3% to 2.9%, its highest since 2012, as it continued to feel the effects of the sterling devaluation following the UK's vote to leave the European Union last year. In the Monetary Policy Committee last week, the MPC held rates at 0.25% but minutes revealed "slightly stronger than anticipated" UK economic growth could lead...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
