Writing for The Guardian this week, Britain’s Prime Minister, David Cameron, said: ‘Six years on from the financial crash that brought the world to its knees, red warning lights are once again flashing on the dashboard of the global economy.’
However, the Governor of the Bank of England, Mark Carney, once again declined to be drawn on the exact timing of the first rate rise in several years, but reiterated that when rates did start rising, it would be a slow and gradual process.
Mr. Carney said: ‘We will decide when to tighten policy based on the inflation target.’ The Governments inflation target of 2% is not expected to be reached
The most telling element of the quarterly Inflation Report regarding the prospects for interest rates is that consumer price inflation is only forecast to reach its target rate of 2 per cent in the fourth quarter of 2017, even if interest rates do not start to rise until October 2015.
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