Article 3JVKZ Spoiler alert: Bank of England's hints of May rate rise are not subtle

Spoiler alert: Bank of England's hints of May rate rise are not subtle

by
Larry Elliott
from Economics | The Guardian on (#3JVKZ)

Ratesetters point to interest increase that appears almost certain unless growth stalls

We've been here before. First, the Bank of England says publicly that it thinks interest rates will need to rise. Next, a couple of members of its monetary policy committee break ranks and vote for borrowing costs to go up. Finally, the other members of the committee say they too think that the time is right for action.

This is how the Bank of England softened up the public when it raised interest rates from 0.25% to 0.5% in November, and the same pattern is being followed again. In February, Threadneedle Street used its quarterly Inflation Report to signal that borrowing costs would be going up sooner and by more than the City had previously expected.

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