Economics
Carney Rate Hike Signals Something Rotten in U.K. Economy
- BOE set to tighten policy for first time in over a decade
- Government’s fiscal watchdog plans to cut productivity outlook
Mizuho's Chatwell: U.K. Not Strong Enough for Rate Hike
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Bank of England Governor Mark Carney is ready to raise interest rates from a position of economic weakness rather than strength.
The fastest inflation in four years has left the U.K. central bank preparing to hike next month for the first time in more than a decade, yet it’s not an accelerating economy fanning those price pressures. Instead, policy makers are being pushed to temper less benign inflationary forces generated by weak productivity and Brexit.