LONDON — Ratings agency Standard & Poor's says it is "a bit sceptical" about Britain's need for an interest rate hike soon, and that recent Bank of England comments that one may be in the offing seem designed to push up sterling and cool inflation. "Overall, we believe the Bank and Mark Carney's recent statements are primarily aimed at propping up sterling to reduce imported inflation pressures," S&P analysts said in a report released on Wednesday. "This strategy may include an actual 25 basis point hike in November, thus bringing the policy rate back to where it was before the Brexit referendum. Additional moves in 2018 do not appear warranted on the back of a slowing economy," it said. Advertisement Continue reading the main storyS&P noted how incomes, when adjusted for inflation, were falling and that it expected another weak third quarter for the economy, based on recent data.

Source: New York Times October 04, 2017 10:31 UTC