Bank of England (BoE) Governor Mark Carney played down expectations of an earlier-than-expected rise in interest rates on Wednesday, despite signs of a pickup in the U.K.’s economic recovery.
Speaking at a press conference following the publication of the BoE’s quarterly inflation report, Carney said a hike in rates would depend on the degree of slack in the U.K. economy, and the prospects for its absorption.
“The economy has edged closer to the point at which the bank rate will need—gradually—to rise,” Carney said, but stressed that discussions of timings should be kept “in perspective.”
The BoE indicated that a rate hike could come towards the end of the first quarter of 2015, or the beginning of the following quarter, although it stressed that when it did happen, the rise would be gradual.
The inflation report follows calls from some for interest rates to rise soon, given a string of data releases suggesting the U.K.’s economy is picking up steam.
Carney, however, called on a sporting analogy to illustrate his thoughts on the U.K. recovery.
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