A rate hike will probably soon be “
necessary
”, the Bank of England (BoE) said on Thursday.
If the British economy evolves in line with current projections, "
it will be necessary in the months to come to increase the interest rate in order to reach our inflation target of 2%
", warned the institution.
Asked about the possible expiry of these “
next months
”, BoE Governor Andrew Bailey replied that this meant “
from now
”, which could fuel expectations of a hike in December.
The Bank of England, which has kept its key rate at its historic low of 0.1% in the meantime, faces a dilemma shared by other central banks.
It is a question of containing an inflation which accelerates without stifling growth.
See also
The Fed comes out of the monetary emergency
In the United Kingdom, inflation reached 3.1% over one year in September.
According to the BoE's projections, it rose to "
just under 4%
" in October, will
drop
to 4.5% in November and will hold
steady.
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