You are here: Home - News -

Bank of England chief Carney raises expectations of August rate rise

by:
  • 05/07/2018
  • 0
Bank of England chief Carney raises expectations of August rate rise
Bank of England governor Mark Carney has raised expectations of an interest rate rise next month, after talking up the UK’s economic performance.

 

Data points to a pick-up in growth in the second quarter of the year, after a disappointing start to 2018, according to the chief monetary policymaker.

In a speech, Carney said: “The incoming data have given me greater confidence that the softness of UK activity in the first quarter was largely due to the weather, not the economic climate.

“A number of indicators of household spending and sentiment have bounced back strongly from what increasingly appears to have been erratic weakness in Q1.”

The job market has remained strong and headline inflation is expected to rise in the short term because of higher energy prices, the governor said.

 

Economy evolving

He added that the economy is evolving largely in line with the May inflation report projections.

In this scenario, raising interest rates would be appropriate to return inflation to its target, according to Carney.

The Bank of England’s rate-setting Monetary Policy Committee is due to meet again in August.

At the last meeting in June, three members of the committee voted to immediately raise rates to 0.75%, from the current level of 0.5%.

Carney voted to hold rates in June, but following his remarks today, it appears he could switch and favour a rate rise next month.

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • Todays Mortgage Administrator iVent programme: author Chris Croft discusses communication skills, @AldermoreBank's… https://t.co/yKzmM7makW
  • My week on Twitter 🎉: 104 Mentions, 47.7K Mention Reach, 66 Likes, 50 Retweets, 41.6K Retweet Reach. See yours with… https://t.co/WkMvPssFMF
  • Our first day of the Mortgage Administrator iVent has been a great success – don’t forget to join us again tomorrow… https://t.co/UPFl3MW119
  • RT @DanielleDennis9: Our first ever virtual event is looking great! Make sure you log in today, take a look around the stands and watch the…
Read previous post:
Bank of England
Regulators criticise bank chiefs on lack of preparation for major disruptions

The three main financial regulators have taken a swipe at the heads of major financial firms for not being well...

Close