No guarantee Bank of England can pull off plan for gradual rate rises.LONDON (Reuters) The Bank of England is hoping it can gently wean Britain’s economy off record low borrowing costs, but its plan for “gradual and limited” rises in interest rates canada goose jakke herning might prove harder to pull off than investors expect.So far, financial markets agree with BoE Governor Mark Carney’s reassurances that a return to more normal looking monetary policy will probably not be a painful one.

Speculation, instead, is focusing on the shorter term question of whether the Bank’s first rate rise since 2007 will come in November, February or even May.Yet there are a host of scenarios hvor kjøpe canada goose jakke oslo that could require the Bank to step up the pace of rate increases, such as a further run up in house prices or an inflationary surge in pay.



“At some point their hand may canada goose jakke kensington be forced by events,” said Andrew Sentance, a former BoE policymaker who has long called for higher rates. is a degree of inconsistency in pushing off interest rate rises as long as you can and still saying they can be done gradually.”Britain’s economy looks set to enjoy its fastest growth in a decade this year, beating all other major advanced economies, and unemployment has fallen to a five year low of 6.4 percent.