LONDON: Britain’s service sector grew at its fastest pace in over two year in June, boosting hopes for a sustained recovery and dimming speculation new Bank of England Governor Mark Carney will usher in a new wave of stimulus.

Separate surveys showing subdued inflation and rising demand for credit added to the stream of upbeat economic news that has dominated Carney’s first week on the job.

Britain’s closely-watched Purchasing Managers’ Index for services leapt two points to 56.9, higher than any economist polled by Reuters had forecast. Anything over 50 indicates growth.

Sterling jumped as investors bet the Bank of England’s Monetary Policy Committee — which will conclude its first meeting under Carney today — would be in no rush to restart the printing presses.

A minority on the Monetary Policy Committee has consistently argued for more quantitative easing in recent months and Carney, who gained a reputation for monetary activism when at the helm of the Bank of Canada, had been widely expected to back that view. 

The details of yesterday’s services survey were unequivocally strong: New orders and employment both rose at their fastest pace in six years, while business optimism also enjoyed a significant rise.