SENIOR Bank of
Fast economic growth and sharp drops in unemployment have boosted the chances of a hike in the coming months, despite moderate inflation.
The Bank's monetary policy committee (MPC) described the low odds many forecasters had placed on a rate hike this year as "somewhat surprising" in the minutes to its latest meeting, published yesterday.
During a speech later in the day, the Bank's chief economist,
Haldane concluded that the current economic climate was "slightly favouring the front foot".
His MPC colleague
Weale also said that he expected more rapid wage growth, of 2.5 to three per cent in 2014, repeating his suggestion that the economy had less slack than the Bank suspects.
The comments follow governor
"Indications of a rapid tightening in labour market conditions could be a deciding factor over the rest of this year, with some of the more hawkish members of the MPC beginning to press for rate hikes relatively quickly," said
There was no dissent against the decision to keep rates at 0.5 per cent for now, however. All nine members voted for stasis for the 12th month - the longest period of consensus in the Bank's history.
"Since [Carney arrived] unanimity and harmony have reigned. At a time where uncertainty over the
Most Popular Stories
- Neighbor Warns Chris Brown to Stay Off His Property
- Venezuelan Officials Banned From Traveling in U.S.
- As Jobs Market Strengthens, Many Don't Feel It
- WWE Showing Off Its Muscles
- Islamic State Fights for Control of Syrian Oil Wealth
- Target Taps Pepsi Exec as New CEO
- House Votes to Sue Obama
- Hispanic Arts Leaders Unite Across the Border
- Adrienne Bailon Disses Ex-Lover Rob Kardashian
- Exxon Profit Rises, Production Drops