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Carney Steps Up Bank of England Rate Hike Timetable for Brexit-Hit U.K.

  • Economy has limited spare capacity, at risk of overheating
  • Rate rises likely to come sooner and be larger than expected
Bloomberg business news
Mark Carney says monetary policy might need to be tightened "earlier and by a somewhat greater extent"Source: Bloomberg
Updated on

Mark Carney said U.K. interest rates may need to rise at a steeper pace than previously thought to prevent the Brexit-weakened economy from overheating.

The Bank of England lifted its forecasts for economic growth Thursday and said that inflation is projected to remain above the 2 percent target under the current yield curve, which prices in about three quarter-point hikes over the next three years. The governor noted that a key challenge is limited capacity.