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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