UK forms green investment partnership with Bill Gates; rate hike talk lifts pound – as it happened | Business

With the lack of a stronger steer from the governor, rates are expected to rise by more in the next 10 months than at any point in the past 10 years; rising from its historic low to 1% by August, the highest since the 2008 financial crisis.

Britain has, however, been here before, only to leave Mark Carney compared to an “unreliable boyfriend” for stepping back from the brink of rate rises in 2014. Now economists say his successor could be at risk of history repeating, if lack of action next month leaves the City befuddled by Bailey.

Andrew Sentance, a member of the MPC between 2006 and 2011, said the governor could be readily accused of obfuscation after sending mixed messages. “I don’t think he comes across as managing communications very well. The message he sends often seems to come out by accident rather than by design,” he said.

Although advocating for interest rates to rise, Sentance said it was unlikely that the Bank would move rates in November or December. “It seems to me that their most likely first move is in February. Acting now would send a signal that the MPC feels like it’s behind the curve. It would be admitting it.”

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