Bank of England warns of interest rate rise over next three years
by Phillip Inman from Economics | The Guardian on (#4EASN)
A rise in growth above 1.5% in 2020 and 2021 would be enough for the economy to begin overheating
Bank of England governor Mark Carney has warned that a modest recovery over the next three years will warrant higher interest rates than financial markets currently expect as inflationary pressures force the central bank to act.
Unlike the European Central Bank and and the US Federal Reserve, which have signalled a significant easing of monetary policy in recent weeks, Carney said investors were under-estimating the likelihood of higher interest rates in three to five years' time.
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