24 Jun 2014
BoE Carney's testimony: Interest rate increases will be limited, gradual
FXStreet (Łódź) - Governor Carney stresses that the timing of interest rate rises will be dependent on data.
• Once initiated the rate increases will be limited, gradual.
• There is still scope to absorb more slack before the rate hike, Carney assures, adding that the economy needs more balance for a sustained recovery as well.
• Survey data suggest pick up in real wages could be about to happen.
• Wage growth should pick up in the second half of the year, but the timing and the degree "remains to be seen."
• The recovery in the UK is no longer fuelled just by consumer spending and house prices. Business investment is also picking up now.
• Once initiated the rate increases will be limited, gradual.
• There is still scope to absorb more slack before the rate hike, Carney assures, adding that the economy needs more balance for a sustained recovery as well.
• Survey data suggest pick up in real wages could be about to happen.
• Wage growth should pick up in the second half of the year, but the timing and the degree "remains to be seen."
• The recovery in the UK is no longer fuelled just by consumer spending and house prices. Business investment is also picking up now.