Bank of England freezes key interest rate, but warns of high inflation
London — On Thursday, the Bank of England (BoE) froze its key interest rate but cautioned that it could rise more quickly than expected so as to bring down high inflation. The BoE’s nine-strong monetary policy committee "voted unanimously to maintain the bank rate at 0.5%", but rates could rise sooner than expected "to return inflation suitably to target", it said in a statement. The BoE lifted its forecasts for economic growth and suggested it may need to raise interest rates faster than previously indicated. The monetary policy committee (MPC), led by governor Mark Carney, sees the UK growing quicker than its sustainable pace through 2020, meaning there’s a greater risk of overheating. Inflation is projected to remain above the 2% target under the current yield curve, which prices in about three quarter-point hikes over the next three years. The bank sees inflation at 2.2% in the first quarter of 2020 — above the 2% goal — further indicating it will need to tighten policy faster. ...
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