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Bank of England governor Mark Carney has warned that a modest recovery over the next three years will warrant higher interest rates than financial markets currently expect as inflationary pressures force the central bank to act.
Unlike the European Central Bank and and the US Federal Reserve, which have signalled a significant easing of monetary policy in recent weeks, Carney said investors were under-estimating the likelihood of higher interest rates in three to five years’ time.
Read more at The Guardian.