Skip to content
Subscriber Only

Global Turmoil Darkens Path to Bank of England Rate Increase

  • Oil and China compound inflation drag from slowing wage growth
  • Economists forecast no change to 0.5% rate on Jan. 14
Updated on

If Mark Carney made a New Year’s resolution to raise U.K. rates, the rest of the world isn’t helping.

Since the Bank of England’s meeting last month, oil has dropped to a 12-year low, the World Bank cut its global growth forecasts, and China’s yuan devaluation wiped $4 trillion from global equity markets. Those headwinds may overshadow any pressure Governor Carney might have faced to follow the U.S. Federal Reserve, which raised its key rate for the first time since 2006 last month.