BOE’s Carney Faces Balancing Act

Bank of England Governor Mark Carney faces a difficult balancing act on Wednesday when he will try to acknowledge Britain’s strong economic recovery without adding to expectations of an early rise in interest rates.

Britain is set for economic growth of about 3 percent this year, faster than any other big, industrialised nation, and house prices have jumped by about 10 percent over the past 12 months, raising fears of a new property bubble.

But the economy is only just recovering its size of before the financial crisis, having taken far longer than most of its peers to get growth going again.  The BoE says it believes the recovery can continue apace without pushing up inflation.

Reuters

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