Soaring Inflation May Boost BOE Rate-Hike Warning This Week
- Market expectations of an interest-rate increase have risen
- Easing of public-sector pay restrictions may add to case
AllianzGI CEO Says Carney to Explain Inflation Away
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Bank of England Governor Mark Carney may now have what he needs to convince the market that a rate increase will come sooner rather than later.
After failing to shift investors’ rate view in August, the renewed inflation pickup matching the fastest in four years could give the BOE’s warning more credibility if policy makers say markets are still are underpricing future hikes. The odds on higher borrowing costs jumped after the consumer-price figures on Tuesday.