Carney Rates Resolve Challenged as Recovery Builds: U.K. Credit

Bank of England officials will probably hold fire on stimulus today as a strengthening economic recovery challenges their resolve to keep interest rates low.

The Monetary Policy Committee, after meeting for the first time since introducing forward guidance, will keep its key rate at a record 0.5 percent and bond-buying program unchanged, according to two Bloomberg News surveys. Factory and services growth surged in August, extending a recovery that’s pushed U.K. borrowing costs to a two-year high. Bank of America Merrill Lynch says the MPC may issue a statement.