The Bank of England has held interest rates at 0.25% but said a rate rise "over the coming months" was possible if the UK economy continues on its current trajectory.
In particular, they pointed to August's inflation which beat expectations, rising to 2.9% up from 2.6% in July, reaching levels last seen in 2012. Furthermore, in the Monetary Policy Committee meeting, the MPC also admitted the "slightly stronger than anticipated" UK economy could lead to a withdrawal of stimulus. Bank of England governor Mark Carney said: "These developments had further strengthened the case for an immediate tightening in monetary policy. "A withdrawal of part of the stimulus that the committee had injected in August last year would help to moderate the inflatio...
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