TSN : No guarantee Bank of England can pull off plan for gradual - TopicsExpress



          

TSN : No guarantee Bank of England can pull off plan for gradual rate rises: By David Milliken LONDON (Reuters) - The Bank of England is hoping it can gently wean Britains economy off record-low borrowing costs, but its plan for gradual and limited rises in interest rates might prove harder to pull off than investors expect. So far, financial markets agree with BoE Governor Mark Carneys reassurances that a return to more normal-looking monetary policy will probably not be a painful one. Speculation, instead, is focusing on the shorter-term question of whether the Banks first rate rise since 2007 will come in November, February or even May. Yet there are a host of scenarios that could require the Bank to step up the pace of rate increases, such as a further run-up in house prices or an inflationary surge in pay.
Posted on: Sun, 17 Aug 2014 09:43:42 +0000

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