Carney Outs Himself as One of BOE Majority Seeing Scope for HikeBy
A majority of Bank of England policy makers see an interest-rate increase around the corner and Mark Carney is among them.
The BOE revealed Thursday that for most of the nine-member Monetary Policy Committee, “some withdrawal of monetary stimulus was likely to be appropriate over the coming months in order to return inflation sustainably to target.” And the governor himself confirmed that he is one of them in a pooled television interview.
“What you heard today is that the majority of members of the committee, myself included, see that that balancing act is beginning to shift, and that in order to return inflation to that 2 percent target in a sustainable manner there may need to be some adjustment of interest rates in coming months. We’ll take that decision based on the data, but yes that possibility is definitely increased.”
Carney, speaking at a school in London as part of the launch of the BOE’s new 10-pound note, also said the “speed limit” of the U.K. economy has shifted due to the financial crisis and Brexit vote. That means the first rate hike will come while the economy is “not growing quite as fast as it would have done in the past,” he said.
— With assistance by David Goodman, and Jill Ward