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Bank warning around interest rates

3 May, 2019

The Bank of England has warned that that there may need to be rises in interest rates over the next three years as the result of a modest amount of growth in the UK economy, leading to inflationary pressures.

Governor Mark Carney said that growth of above 1.5% in 2020 and 2021 would cause the Bank to step in and increase rates to prevent overheating. However, the Bank’s monetary policy committee quarterly inflation report stated that any rises would be limited to a quarter point.

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