British interest rates will have to rise despite an expected dip in inflation but the exact timing of the hike is uncertain and any moves are likely to be gradual, Bank of England Governor Mark Carney said in an interview published on Wednesday.
Carney, speaking to the Birmingham Post, stuck close to the message that he gave last month alongside updated economic forecasts and said inflation was still expected to dip below 1 percent in the coming months before starting to accelerate.
“What that means though, for this economy to have balance and inflation to get back to two percent over the next few years, is that … interest rates are going to have to increase,” he was quoted as saying.
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