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Majority of BoE policymakers support rate increase in coming months, Carney says


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Majority of BoE policymakers support rate increase in coming months, Carney says

Bank of England Governor Mark Carney said most of the central banks' policymakers believe an increase in interest rates may be appropriate in the coming months, Bloomberg News reported.

"Having used up more spare capacity, having seen some evidence of building domestic pressures, the judgment of the majority of the committee is some raise in interest rates over the coming months may be appropriate," Carney said during a testimony to lawmakers.

Silvana Tenreyro, a member of the central bank's monetary policy committee, said the U.K. economy is approaching a "tipping point" at which the removal of some of the stimulus might be justified. Tenreyro said she could back a rate increase if inflation pressure builds in the labor market.

But the committee's newest member and the central bank's new deputy governor, Dave Ramsden, said he was not ready to vote for a rate increase, Reuters reported. "Despite continued robust growth in employment, there is no sign of second-round effects onto wages from higher recent inflation," Ramsden said.

Ramsden said business investment could turn out to be weaker than the BoE's central forecast because of the Brexit process and the evolving uncertainties around it.

Financial markets are expecting the central bank to increase interest rates at the end of its next policy meeting on Nov. 2. U.K. inflation rose to 3.0% in September, its highest level since March 2012 and above the BoE's 2% target.