Bank of England signals 'modest tightening' over the next two years

The Bank of England signaled that its concerns over inflation are strong enough to warrant the withdrawal of some support to the U.K. economy over the next three years.

Policy makers led by Governor Andrew Bailey said they now expect annual price growth to peak higher than expected around 4%. While most of the increase may prove temporary, meeting the central bank’s 2% target in the medium term will require “some modest tightening,” they said.

The shift from a previous pledge to keep policy loose puts the BOE firmly among global central banks that are worried more