U.K. Recovery Splits Central Bank Alumni on Rates

The U.K.’s recovery is dividing former Bank of England policy makers over the timing of Mark Carney’s first rate increase as governor of the central bank.

While the Monetary Policy Committee kept its benchmark rate at a record low today, speculation among forecasters is mounting that it is on the verge of a split. Echoing that debate, Andrew Sentance insists the panel should have started increasing borrowing costs already, while Sushil Wadhwani says it must wait as the economy uses up spare capacity.