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Carney rate hike signals flaws in UK economy

Published Wed, Oct 11, 2017 · 09:50 PM

London

BANK of England Governor Mark Carney is ready to raise interest rates from a position of economic weakness rather than strength.

The fastest inflation in four years has left the UK central bank preparing to hike next month for the first time in more than a decade, yet it's not an accelerating economy fanning those price pressures. Instead, policy makers are being pushed to temper less benign inflationary forces generated by weak productivity and Brexit.

The UK has fallen to the bottom of the Group of Seven growth rankings, but also of concern is the fact that it's far less productive than international peers.

For Mr Carney, who's warned that leaving the European Union could worsen the situation, that means a lower rate of growth is alrea…

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