2017.10.1800:01:00UTC+00Carney Confirms Rate Hike Imminent as Inflation Hits Multi-Year High

Governor Mark Carney reaffirmed that the Bank of England is close to making its first rate hike move in more than 10 years, as inflation reach 3 percent and another official said that the UK economy is near an inflection point.

The head of the BOE and the two newly appointed members of the central bank's rate-setting Monetary Policy Committee indicated that the dissolution of economic slack is their main consideration as they prepare for a November 2 meeting decision during their testimonies to lawmakers. The addresses coincided with the release of a report indicating consumer prices accelerating at its fastest rate since April 2012.

Carney stated that since the BOE had used up more spare capacity and due to increasing inflationary pressures in the UK, majority of the members of the governing committee believe that a rate hike in the following month may be fitting.

The BOE leader professed that while CPI growth is near its tipping level, it's more likely than not to accelerate once more this month. In turn, this would bring CPI to a more than full percentage point above BOE's 2 percent target.

Meanwhile, MPC member Silvana Tenreyro said that the BOE may soon need to move, but put an emphasis that the move may occur in the coming months as the economy reaches its tipping point.

A main concern for policymakers is that the economic slack that can hurt price pressures may soon be undermined. Jobless rate is at a historic low and uncertainty surrounding Brexit threatens to affect output.