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The Bank of England is about to score an own goal

To raise interest rates would be a mistake

By Duncan Weldon  

Bank of England Governor Mark Carney. Photo: Jonathan Brady/PA Wire/PA Images

Tomorrow the Bank of England looks set to raise interest rates. This will be a mistake. Oxford Professor Simon Wren-Lewis and the Financial Times’ Martin Sandbu have neatly marshalled the evidence against a hike. In short—growth remains weak, inflation may be above target but that is almost entirely down to the weakness of Sterling, and despite low headline unemployment there is little sign that wage growth is about to pick up and drive domestic price pressures higher.

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