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BoE left interest rates unchanged, cuts growth and inflation forecasts

Bank of England policy maker Ian McCafferty dropped his call for an interest-rate increase as officials cut their growth and inflation forecasts and signaled borrowing costs will stay low. The Monetary Policy Committee led by Governor Mark Carney left the benchmark at a record-low 0.5 percent, as the nine-member panel voted unanimously for the first time since July last year. While the rate outcome was forecast by all economists in a Bloomberg survey, just three out of 25 predicted the vote switch. 
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BoE Forbes: UK to Hike Rates When Wages Pick Up

The Bank of England (BoE) should begin rising interest rates as soon as wages and unit labor costs begin to increase more, the text of the speech due to be delivered on Tuesday by BoE policymaker and rate-setter Kristin Forbes showed today. "Once this upward momentum in wages and unit costs builds, as I expect it will, then it will be time for the UK to follow the example of its fellow 'city' and begin the slow and gradual process of tightening monetary policy. The relatively smooth experience of 'lift-off' in the US suggests that, at least in this 'Tale of Two Cities', there will not be a revolution," Kristin Forbes will say during her speech to the Henry Jackson Society in Parliament on Tuesday.
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BoE quiet on Brexit

It's a new year and Bank of England officials have been sharing their views on the outlook for the U.K. and the risks. However, their official communications offer no guidance on what economists say is the top risk facing the U.K.: the forthcoming referendum on its membership in the European Union.  Read more...

Carney says there is no timetable for rate hike

Bank of England Governor Mark Carney said on Tuesday he had no set timetable for raising interest rates and avoided giving his trademark steer on what was likely to happen to borrowing costs against a volatile global economic backdrop. Carney, making his first speech of 2016 as growth hit a quarter-century low in China while wages rise more slowly at home, said he would only commit to keeping the bank focused on its inflation target.
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