Bank sits tight as UK recovers

Click to follow
The Independent Online

More evidence of growing economic momentum is set to stay the Bank of England's hand on help for the recovery this week.

The Bank's Monetary Policy Committee (MPC) rate-setters meet on Wednesday after another month of buoyant data, including a surprise growth upgrade to 0.7 per cent between April and June. More timely activity surveys from manufacturing, construction and services sectors – the latest of which are due to be released before the meeting – should also signal the economy growing at least as fast in the current quarter. The latest recovery signs mean the MPC is unlikely to expand its £375bn money-printing programme, as the forward-guidance strategy of Mark Carney, pictured, linking interest rate rises to falls in unemployment takes centre stage.