Carney Looks Past Low Inflation to Signal BOE Rate Increases

Mark Carney insisted the Bank of England will look through an inflation slump as officials signaled higher borrowing costs could come sooner than investors anticipated.

While the governor presented forecasts showing the rate of price growth will drop below zero in the coming months, he blamed weakening oil prices and said domestic pressures are building. That means the central bank may be headed for rate increases for the first time in more than seven years, even as its counterparts in the euro area and Sweden unleash additional stimulus to prevent deflation.