Mark Carney: Bank Of England is close to start interest rate hike

Mark Carney, managing director of Bank Of England, said he still had to balance the need to create new jobs with inflation growth rising more strongly than the CB target. "Inflation reaching around 3% in the coming months is something we expect," Carney said.

Earlier Tuesday, official data showed that the UK's inflation rate has reached 3%, well above the 2% target. Much of the growth is due to the decline in pounds after the vote for Brexit last year, which is likely to be a temporary catalyst for price growth.

On the chart below, you can track UK's latest macro data, with the biggest impression that wage growth continues to decline, and recent August data indicate a 0.1% drop, while inflation is rising by as much.

The projections to a large extent indicate an increase in the base rate at the November meeting of the ECB, although Carney, as in previous speeches, refused to be more specific. November's interest rate pick-up jumped to 52 percent and the pound declined for the second consecutive day against the dollar, traded down 0.53 percent to 1.3180 dollars a pound.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

Bloomberg: Carney Confirms Rate Hike Is Near as BOE Heads for 'Tipping Point'

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