In an interview with the BBC yesterday, Mark Carney said that an increase in the key Bank rate would happen this year but not necessarily at the May MPC meeting. This is a climbdown from what he had pencilled in, and the market took as a 90 per cent certainty, following awful retail sales data and inflation coming in lower than expected, CPI up 2.5 per cent Y/Y. He added that though ‘likely’ any hikes will depend on Brexit talks.
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