Daily Archives: August 13, 2014

Treasury Select Committee...Bank of England governor Mark Carney answers questions in front of the Treasury Select Committee in the House of Commons, central London, on the subject of the Bank of England's quarterly inflation report and Scottish independence. PRESS ASSOCIATION Photo. Picture date: Tuesday March 11, 2014. Later today he will answer questions on the 'Economics of currency unions' and the Bank's Foreign Exchange Market Review. See PA story ECONOMY Bank. Photo credit should read: PA Wire

The Bank of England will weigh the weakness of Britain’s wage growth against the strength of its economic recovery when it delivers fresh forecasts in its quarterly inflation report on Wednesday morning, containing signals about when a rise in interest rates is likely.

<To be delivered in tandem with the latest UK employment data, the BoE’s estimates of the amount of slack in the economy will be one of the most closely watched metrics. At the last quarterly inflation report in May, the BoE estimated the amount of spare capacity was between 1 – 1.5 per cent, judging there was room for this to narrow further before rates tightened.

By Sarah O’Connor and Claer Barrett