29 Jan 2014
BoE's Carney: Rates to remain low until recovery takes hold
FXstreet.com (Łódź) - Bank of England governor Mark Carney said on Wednesday that interest rates would remain unchanged for some more time in order to allow the recovery to take hold. Once the time came to raise them, it would be done only gradually, he assured.
Speaking in Edinburgh on Scottish independence, Carney said he expects the strong pound to induce benign inflation and consumption growth to slow. He signaled that the MPC would present the modifications to the forward guidance policy soon. “No doubt backing away from 7% unemployment threshold,” as Jamie Coleman commented on FXBeat.
Addressing Scottish business leaders, Carney pointed to the need of ceding some of national sovereignty if Scotland became independent, but continued using the pound. A banking union and
strict fiscal rules would be essential to fend off problems such as those experienced by the Eurozone.
"Those risks have been demonstrated clearly in the euro area over recent years, with sovereign debt crises, financial fragmentation and large divergences in economic performance," Carney said.
Speaking in Edinburgh on Scottish independence, Carney said he expects the strong pound to induce benign inflation and consumption growth to slow. He signaled that the MPC would present the modifications to the forward guidance policy soon. “No doubt backing away from 7% unemployment threshold,” as Jamie Coleman commented on FXBeat.
Addressing Scottish business leaders, Carney pointed to the need of ceding some of national sovereignty if Scotland became independent, but continued using the pound. A banking union and
strict fiscal rules would be essential to fend off problems such as those experienced by the Eurozone.
"Those risks have been demonstrated clearly in the euro area over recent years, with sovereign debt crises, financial fragmentation and large divergences in economic performance," Carney said.