Higher Rates Would Sink U.K.

While U.K. wages are finally outpacing inflation, the economy is still too fragile for the Bank of England to contemplate higher interest rates.

Steady as she goes, Governor Carney.

Photographer: Jason Alden/Bloomberg

Two members of the Bank of England's nine-person Monetary Policy Committee have voted for rate increases at recent meetings, warning about the prospect of an inflationary jump in salaries. While wage growth is now outpacing inflation for the first time since 2009, the central bank's own forecasts for consumer prices mean monetary policy should stay frozen.

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