Friday, September 29, 2017 –
11:41am
Mark Carney says interest rates may rise in the
“relatively near term”, leading to speculation there could be an
increase in November from 0.25% to 0.5%.
“If the economy continues on the track that it’s been
on, and all indications are that it is, in the relatively near term
we can expect that interest rates will increase,” Carney told
BBC Radio 4’s Today Programme today.
“We’re talking about just easing the foot off
the accelerator to keep with the speed limit of the economy and so
interest rate increases when they come – when and if they come –
will be to a limited extent and gradual,” Carney added.
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The Financial Times says Carney’s “slip
of the tongue will cement expectations that the central bank is
about to raise the cost of borrowing for the first time in over a
decade”. Financial markets anticipate a rate rise to 0.5% when
the Bank’s monetary policy committee next meets on 2 November, the
FT adds.
Meanwhile, Office for National Statistics (ONS) figures released
today show the annual growth rate for gross domestic product was
1.5%, the weakest annual growth performance since 2013.
“Perhaps of greatest concern will be a decline in
output in the country’s powerhouse service sector –
responsible for the vast majority of UK growth since the financial
crisis,” Sky News says.
The pound – which bounced back in early September
to levels last seen in the aftermath of the Brexit vote – fell
0.5% against the US dollar in the wake of the ONS figures, back
below $1.34.
Interest rates Bank
of England Mark
Carney
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