Carney Says Gradual BOE Rate Increases Needed Amid Headwinds

Bank of England Governor Mark Carney said interest-rate increases will be more restrained than in the past as he warned that “extraordinary forces” are still confronting the British economy.

The BOE is supporting the investment needed for growth “through clear guidance that it expects increases in bank rate, once they begin, to be gradual and limited,” he said in a speech in Glasgow, Scotland today. “This is in part because the headwinds facing the economy are likely to take some time to die down.”