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U.K. inflation slowed more than economists forecast in April to a seven-month low and producer prices rose the least since 2009 as fuel costs fell.
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Bank of England Governor Mervyn King will today assess if the economy’s return to growth is convincing enough for him to end a push for more stimulus after an unprecedented run of three vote defeats.
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The Bank of England left its stimulus program unchanged as officials assess recent signs of strength in the economy after it returned to growth in the first quarter.
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It’s not paying to be either an insider or the favorite when it comes to landing the top job at a Group of Seven central bank.
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The Bank of England will maintain its target for asset purchases next week after surveys indicated the recovery is gaining momentum, a survey of economists shows.
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Britain’s economy avoided a triple- dip recession in the first quarter with expansion that exceeded economists’ forecasts and will provide relief to a government criticized for failing to foster a recovery.
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The U.K. economy probably avoided an unprecedented triple-dip recession, providing relief to a Conservative-led government under attack for putting austerity before growth.
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Britain lost its top credit rating by Moody’s Investors Service, which cited weakness in the nation’s growth outlook and challenges to the government’s fiscal consolidation program.
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Incoming Bank of England Governor Mark Carney was handed scope to pursue “escape velocity” for the U.K. economy so long as it doesn’t come at the cost of surging inflation.
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Bank of England Governor Mervyn King was defeated for a second month in a vote to expand stimulus as the majority of policy makers said more bond purchases may erode their credibility and push the pound lower.