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The pound advanced for a third day against the dollar after Bank of England Governor Mervyn King said policy makers aren’t trying to talk it down, damping speculation they are seeking a weaker sterling to spur growth.
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Bank of England Chief Economist Spencer Dale said there’s a risk that more stimulus could stoke consumer-price gains and he defended the current inflation targeting remit as flexible enough to aid economic growth.
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U.K. inflation forecasts for this year were raised by economists, highlighting the quandary policy makers face as they balance sustaining a recovery with the need to foster price stability.
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Bank of England officials absorbing an influx of Financial Services Authority staff face potential tensions on pay thrown up by the merger of their institutions.
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Bank of England Chief Economist Spencer Dale said a suggestion by BOE Governor-designate Mark Carney that a central bank’s mandate may need to change to allow further stimulus poses risks to officials’ credibility.
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Bank of England Chief Economist Spencer Dale said the U.K. economy may be facing at least one quarter of contraction before a “gentle recovery” in the second half of next year.
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Mark Carney’s quest for “escape velocity” takes off in the U.K. this week.
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Bank of England officials will probably discuss the threat of a triple-dip recession today and prepare to sit on their hands as a looming change of governor overshadows the remainder of Mervyn King’s term.
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Bank of England Chief Economist Spencer Dale said that officials should raise interest rates to bring inflation under control even if Britain’s economic recovery isn’t yet assured.
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Bank of England Chief Economist Spencer Dale said that monetary policy makers should boost interest rates to control inflation, even if Britain’s economic recovery isn’t yet guaranteed.