Get ready for a rate rise
Brexit is no longer the Bank of England’s biggest concern. The bank’s monetary policy committee, led by Governor Mark Carney, reacted to accelerating inflation by declaring on Thursday that “some withdrawal of monetary stimulus was likely to be appropriate over the coming months.” Investors are now anticipating action as soon as the next meeting in November, regardless of any overhanging cloud from the U.K.’s exit from the European Union, which the bank expects to slow the economy. It’s been over a decade since the BOE last raised rates and for most of the past year it has come under fire from Brexit supporters for highlighting the economic risks of the split. It again warned on Thursday that the divorce poses a challenge to the outlook. The uncertainty may not be sufficient to stay the BOE’s hand, though. By one measure, the odds on a hike by November have risen to more than 60 percent from 40 percent earlier on Thursday. A rate rise is fully priced in for February 2