Brexit All That Stands Between BOE and a Rate Hike
Light trails made by passing vehicles are seen outside the Bank of England (BOE), in London, U.K., on Wednesday, Jan. 9, 2013. Bank of England policy makers will probably refrain from adding further stimulus to the U.K. economy today as their new credit-boosting program shows early signs of success.
Photographer: Chris Ratcliffe/BloombergWhen it comes to reasons for raising interest rates, the U.K. economy is ticking a lot of the boxes right now.
Growth that's consistently faster than expected, accelerating inflation, record employment and soaring consumer borrowing suggest the economy is running hot enough to weather higher borrowing costs. Traders have taken notice, responding to the latest signs of economic strength by raising bets on a Bank of England interest-rate hike by the end of the year.