BOE jacks up 2017 growth forecast; in no rush to raise interest rates

London

THE Bank of England (BOE) boosted its forecast for British growth in 2017 and some rate-setters were more nervous about rising inflation, but the bank overall seemed in no rush to raise interest rates as the economy adjusts to the prospect of "Brexit".

In a sign of a developing split, the BOE said that some of its rate-setters had "moved a little closer" to their limits for tolerating an overshoot of the bank's 2 per cent inflation target, caused by sterling's slide since June's Brexit vote.

But the BOE, announcing its latest quarterly thinking on Britain's economy on Thursday, sent broader signals that it was comfortable with its record low interest rates.

It said that it now expected inflation would be slightly lower in two years' time than it did…