The BoE said it now wanted to return inflation to its 2 percent target over "a more conventional horizon", which would mean curbing price growth within two years rather than three. "Were the economy to evolve broadly in line with the February Inflation Report projections, monetary policy would need to be tightened somewhat earlier and by a somewhat greater extent over the forecast period than anticipated at the time of the November Report," the Monetary Policy Committee said.
BoE indicates rate hike sooner than later
The Bank of England said on Thursday interest rates probably need to rise sooner and by a bit more than it thought only three months ago, because Britain's slow-moving economy is getting a boost from the global recovery. The BoE's rate-setters are giving themselves time to assess how Britain is coping with its impending departure from the European Union as they voted 9-0 to hold Bank Rate at 0.5 percent, in line with a Reuters poll of economists. But Governor Mark Carney and colleagues saw a growing need to move faster on raising rates to keep a grip on inflation in the world's sixth-biggest economy, echoing other leading central banks which are moving toward tighter monetary policy, a decade on from the financial crisis.
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