Lower Inflation Rates Gives BOE Breathing Space In Fight Against Higher Rates

Bank of England Governor Mark Carney has won respite in his battle to keep a lid on interest rates after inflation slowed to the 2 percent target for the first time in four years.

With unemployment falling faster than the BOE anticipated, Carney can look to yesterday’s inflation data for comfort as he reinforces his message that it’s not time to raise borrowing costs. Those figures will aid the governor when he presents new forecasts for growth and inflation next month.

“We know he wants to keep rates low,” said George Buckley, chief U.K. economist at Deutsche Bank AG in London. “Letting guidance lapse would go against everything that Carney has said since he’s become governor.”


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu