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13 Aug 2014
BoE's Carney: Bank rate should rise along with normalization of UK economy
FXStreet (Łódź) - Following the release of BoE's Quarterly Inflation Report on Wednesday, governor Mark Carney explains in prepared remarks that UK's economic expansion is on track, recovery gaining momentum.
• The BoE head suggests bank rates need to rise as the economy normalizes.
• Unemployment has fallen sharply.
• Productivity and real incomes have disappointed.
• "Slack is being used up at faster pace than anticipated."
• Wages are expected to rise by just 1.25% in 2014, down from the previous prediction of 2.5%.
• Growth should accelerate to 3.25% in 2015, down from 3.5% seen before.
• The timing of the increase of the first bank rate hike is not certain yet, Carney stresses.
• Once the rate rises start, they will be gradual and limited.
• The BoE head suggests bank rates need to rise as the economy normalizes.
• Unemployment has fallen sharply.
• Productivity and real incomes have disappointed.
• "Slack is being used up at faster pace than anticipated."
• Wages are expected to rise by just 1.25% in 2014, down from the previous prediction of 2.5%.
• Growth should accelerate to 3.25% in 2015, down from 3.5% seen before.
• The timing of the increase of the first bank rate hike is not certain yet, Carney stresses.
• Once the rate rises start, they will be gradual and limited.