Bank of England policy makers held three votes for the first time at their meeting this month as they debated introducing guidance on interest rates under new Governor Mark Carney, according to a central bank official.
The Bank of England will probably increase interest rates this year by the most since it gained independence in 1997 or face losing its credibility, Societe Generale SA Chief U.K. Economist Brian Hilliard said.
Mark Carney’s first six weeks as Bank of England governor will test his ability to turn activist rhetoric into policy reality as he seeks to accelerate the struggling U.K. economy to what he calls “escape velocity.”
Bank of England Governor Mervyn King risks facing a third defeat in his bid to expand stimulus as officials wary of dislocating inflation expectations set aside new freedoms given by a change to their remit.