Bank of England eyes interest rate hikes as outlook brightens

LONDON: The Bank of England hinted on Thursday at quicker-than-expected interest rate hikes, after raising its UK economic growth forecasts thanks to company stockpiling ahead of Brexit.

BoE Governor Mark Carney later told a news conference that rates would have to increase more quickly than markets currently anticipate - if the predictions proved correct. Britain is now due to leave the EU by Oct 31 after two delays were triggered by MPs rejecting the divorce deal Prime Minister Theresa May had struck with the bloc.

"That boost is expected to be temporary, however, and quarterly growth is expected to slow to around 0.2 per cent in the second quarter." The European Central Bank is meanwhile expected to keep eurozone borrowing costs at historic lows until at least the end of 2019."Unlike the ECB and the US Fed, the Bank of England has not retreated from its plan to raise rates," noted Ian Stewart, chief economist at accountancy group Deloitte.

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