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UK rate rise: Bank of England’s biggest dove turns hawkish

by Dylan Lobo on Jun 17, 2014 at 08:07

But Schroders European economist Azad Zangana pointed out there were a number of caveats in Carney’s speech.

‘Whilst this is the first time that Carney has surprised the market with more hawkish comments, there were plenty of caveats in his speech to lead us to question his position on when interest rates should begin to rise,’ Zangana said.

‘He [Carney] pointed to the ongoing challenges in the private sector and the need for a reduction in household debt, along with the inevitable fiscal tightening that is likely to be stepped up after the general election.

‘He also mentioned the impact of the significant appreciation in GBP, which is likely to reduce the already weak overseas demand for UK exports, and dampen imported price inflation.

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