Bank of England update
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The Bank of England said on Thursday that after its most recent policy meeting, it “may need to moderately tighten monetary policy” in the next few years to control inflation.
The Central Bank’s Monetary Policy Committee warned that inflation may rise to 4% by the end of this year. Coupled with a strong recovery, most of its members believe that the conditions have been met and they can start discussing raising interest rates again.
But MPC is not in a hurry to take immediate action. The committee voted 7 to 1 to extend the 150 billion pounds of government debt purchase program until the end of the year, and unanimously maintained interest rates at a historic low of 0.1%.
However, the change in the language of the Bank of England will be seen as a sign that it may start raising interest rates sooner than previously thought.
This story is unfolding. ..