Bank of England Chief: Gradual Rate Rises Will Correct Inflation

Mark Carney said gradual interest-rate increases will be enough to get inflation back on track as the Bank of England cut its economic growth forecasts through 2017.

The central bank’s view, published in the quarterly Inflation Report on Wednesday, endorsed investors’ expectations that tightening may not start until the middle of next year. The BOE, which sees inflation returning to its 2 percent target within two years, lowered its 2015 outlook to 2.5 percent from 2.9 percent and said productivity will barely grow this year.