According to the Bank of England, economists assume interest rates will rise and move toward equilibrium or a ‘natural’ real rate of interest that takes into account inflation over the long term.
The new Governor of the Bank of England, Mark Carney, came to the job with a ‘rock star’ central banker reputation which his predecessor, Sir Mervyn King, lacked. Mr Carney was expected to reform the Bank’s policies and in August he took a major step in this direction.
The UK’s services sector has expanded at its fastest pace since December 2006, a survey has indicated.
