A general view shows the Bank of England in the City of London, Britain April 19, 2017. REUTERS/Hannah McKay
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Gov. Mark Carney and the four other members of the Monetary Policy Committee voted to leave rates unchanged. Financial markets were pricing in a roughly 50 percent chance of an interest rate hike by next June, compared with 20 percent earlier this week, Societe Generale fixed-income strategist Jason Simpson said.But many economists said they still saw no rate hike on the horizon possibly for another two years.Economists polled by Reuters had expected only Forbes, whose MPC term expires at the end of the month, to back higher rates.The BoE said Thursday that a recent jump in inflation to 2.9 percent meant it was likely to exceed 3 percent this autumn – higher than the BoE forecast just a few weeks ago and well above its 2 percent inflation target.Britain's economy was the worst performer among the world's top seven advanced economies in the first quarter of this year as the effect of higher inflation – partly due to a weaker pound – caught up with consumers at a time of sluggish wage growth.
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