Bank of England governor Mark Carney has stressed the "gradual pace" of future interest rate increases, with the central bank's forecasts now founded on two more hikes over the next three years.
Following the announcement of the Bank's decision to increase rates from 0.25% to 0.5% today - the first rise in a decade - Carney reiterated the BoE is "easing our foot off the accelerator", after almost of decade of ultra-low interest rates. He said the UK needs to see two further rate increases over the next three years in order to return inflation to its target of 2% and prevent the economy from running "too hot". Carney added that the "sheer novelty of a rate rise creates uncertainty over the impact but we are well positioned for a rate rise". A total of seven members of the c...
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
