Carney Sees Slow Approach on Rates After First Hike in a Decade
- BOE raises interest rate to 0.5 percent, first hike since 2007
- Central bank says economy’s natural growth rate is just 1.5%
Carney Says Rate Hike Needed to Meet Inflation Goal
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Mark Carney stressed that any further interest-rate hikes are some way off as he pointed to the fastest inflation in five years to justify the Bank of England’s first increase since 2007.
“It isn’t so much where inflation is now but where it’s going that concerns us,” the BOE governor told reporters after the Monetary Policy Committee doubled its key rate to 0.5 percent. “While the sheer novelty of the first increase in bank rate in a decade creates some uncertainty around its impact, there are reasons to expect it to be no larger than usual.”