Early interest rate rises are on the cards after the chancellor’s budget giveaway this week and the prospect of a successful Brexit deal before the end of the month, the Bank of England signalled.
Mark Carney, governor of the Bank, claimed that the extra spending in the budget had “the potential to be significant” for policy and that a deal with the European Union in keeping with the prime minister’s Chequers plan would be good for growth.
An increase in rates could come as soon as February with another rise later in the year, economists said after yesterday’s hawkish Inflation Report from the Bank.
