Interest rates may rise as soon 2014

Tim Wallace
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THE RECOVERY means the Bank of England could hike interest rates as soon as late 2014, Deutsche Bank analysts said yesterday.

Markets have only priced in a rise in 2015-16, but economists are increasingly upbeat on the recovery.

“The Bank has been swift to turn policy around over the last 30 years,” said George Buckley. “We doubt the Bank’s turnaround time will be as quick on this occasion, [but] think that as the economy recovers the Bank will feel able to raise interest rates towards the end of 2014.”