Early UK rate hike cannot be ruled out

The Bank of England is taking a patient approach in its deliberations in relation to the timing and extent of interest rate increases, writes John Fahy.

Last week’s meeting of the Monetary Policy Committee (MPC) concluded in line with market expectations with no change to UK monetary policy.

The MPC’s patient approach is not surprising, given the backdrop of the recent mixed performance in the global economy and a very subdued inflationary environment (currently at 0.1%) in the UK.