• ECONOMY
  • FEBRUARY 17, 2011, 5:46 A.M. ET

BOE Signals Slower Pace of Rate Rises

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BY ALEX BRITTAIN AND PAUL HANNON

LONDON—The Bank of England appears likely to raise its key interest rate this year, but start later and move less rapidly than investors had expected.

The BOE said investors had expected its key rate to start to rise in the second quarter, and reach 1% by the end of this year and 2% next year.

But new forecasts for growth and inflation released by the central bank Wednesday, coupled with comments by BOE Governor Mervyn King in a news conference that followed, suggest policy makers don't expect quite as sharp a rise in the bank's rate from its record low ...

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