Carney hints MPC will react to higher inflation

Hints at more hawkish tone

The Bank of England is paying more attention to inflation and the UK's tolerance limit, as governor Mark Carney indicates the Monetary Policy Committee will react to higher prices.

Using a more hawkish tone in a speech to the London School of Economics, Carney (pictured) reiterated comments made in November that there are "limits to the extent to which above-target inflation can be tolerated", according to the FT. He said British consumers appear to be "entirely looking through Brexit-related uncertainties" and a stronger growth outlook globally also continues to be supportive. "The MPC will monitor developments in the light of its inflation tolerance, and will explain its assessment and policy stance accordingly," he said. Previously, the Bank indicated it w...