24 Jan 2014
Flash: Carney feels UK economy is in a ‘different place’ - Investec
FXstreet.com (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec notes that BOE Governor Mark Carney said the UK economy is "in a different place" after several months of faster-than-expected growth and tumbling unemployment.
Key Quotes
"He said the MPC will assess its policy stance and its guidance on interest rates when it meets next month. "We will do the examination there because we're close enough to do the examination" - referring to the 7.0% target for unemployment (currently 7.1%).”
“Mr. Carney said the unemployment rate has "a nice clarity" but said the MPC doesn't want an unnecessary focus "on just one indicator." So the implication is the BOE will look at a broad range of economic factors when assessing the need for higher interest rates, a sign that officials may be preparing to play down the link between BOE policy and falling unemployment, allowing them to keep rates low for longer and not hinder the recovery.."
Key Quotes
"He said the MPC will assess its policy stance and its guidance on interest rates when it meets next month. "We will do the examination there because we're close enough to do the examination" - referring to the 7.0% target for unemployment (currently 7.1%).”
“Mr. Carney said the unemployment rate has "a nice clarity" but said the MPC doesn't want an unnecessary focus "on just one indicator." So the implication is the BOE will look at a broad range of economic factors when assessing the need for higher interest rates, a sign that officials may be preparing to play down the link between BOE policy and falling unemployment, allowing them to keep rates low for longer and not hinder the recovery.."