BoE's Carney: Two extra rate rises needed over three years to stop economy 'running too hot'

First rise in a decade

Governor Mark Carney has stressed the "gradual pace" of future interest rate increases, with the Bank of England's forecasts based on two more hikes over the next three years.

Following the announcement of the Bank's decision to increase rates from 0.25% to 0.5% today - the first rise in a decade - Carney reiterated the BoE is "easing our foot off the accelerator", after almost of decade of ultra-low interest rates. He said the UK needs to see two further rate increases over the next three years in order to return inflation to its target of 2% and prevent the economy from running "too hot". Carney added that the "sheer novelty of a rate rise creates uncertainty over the impact but we are well positioned for a rate rise". A total of seven members of the c...