Bank Of England Governor: Rates Will Go Up

The Bank of England will raise rates in its next interest-rate decision, central bank governor Mark Carney said on Friday.



Many economists had forecast a rate cut to fight deflation, as the country's inflation rate was zero percent in February. 



Carney said:  "The next move in interest rates is going to be up," during a panel discussion at a Bundesbank conference in Frankfurt, 



The U.K. inflation rate was zero percent in February - the lowest level ever recorded by the Office of National Statistics. The Consumer Price Index dropped from 0.3 percent in January to 0 percent in February. 



"This means that a basket of goods and services that cost £100.00 in February 2014 would have still cost £100.00 in February 2015," ONS said in a statement.



In the year to February 2015, food prices fell by 3.4 percent and prices of motor fuels fell by 16.6 percent.



Growth was 2.6 percent in the U.K. in 2014, the highest rate of growth for developed countries globally.



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