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The case for raising interest rates was “some way from being made”, he added.

Households bracing themselves for an imminent interest rate rise were given hope of a reprieve today when a Bank of England official said rates may have to be cut even further to stoke up the United Kingdom economy.

In Britain, while this year’s moves in oil returned headline inflation to zero, there was nothing in those numbers to further undermine expectations that the Bank of England will follow the Federal Reserve in raising interest rates next year.

“Any decision to vote to change Bank Rate will be made on the basis of the balance of risks, but with the comfort that, if subsequent developments mean that any increase needs to be reversed, that can be done”.

“Perhaps most important for monetary policy today, this approach also suggests that sterling’s recent appreciation could create less drag on import prices and inflation than we might have expected if the levels of pass-through (a measure of how responsive global...

US Federal Reserve vice-chairman Stanley Fischer joined the European Central Bank vice-president Vitor Constancio and Bank of England governor Mark Carney on Saturday on a panel at the Kansas City Fed’s annual retreat in Jackson Hole, Wyoming, dedicated to discussing...

On Friday, Fischer hinted that a rate hike was still a possibility in September despite widespread concerns about recent turmoil in stock markets.

The Bank of England has made a decision to hold UK interest rates at 0.5 percent.

At its August Monetary Policy Committee meeting, members voted to keep the benchmark bank rate unchanged from its record low 0.5 per cent, for the 78 consecutive month.

Not much room for “unnatural” profit there.

Core inflation in July, stripping out volatile energy, food and tobacco prices, rose to 1.2% – its highest rate since February.

The Consumer Price Index (CPI) measure of inflation was slightly higher than expected in July, edging up from zero in June due to the weaker impact of summer clothing sales compared to previous year. She added that interest rates would have to raised well before inflation hits...

The BoE decided to keep interest rates at 0.5%, with minutes of the Monetary Policy Committee meeting revealing a vote of 8-1 in favour of this decision.

At a press conference, he said he stuck to his personal view that the decision about when to start raising rates from 0.5 per cent now was likely to come into sharper relief at the turn of the year.

Inflation is projected to rise from current lows “around the turn of the year“, as past falls in energy prices drop out of the annual comparison, the report said.