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Bank of England Governor Mark Carney is now responding to questions from the press.

Key quotes (via Reuters)

  • Given how low UK productivity is, wage growth in upper 2 pct to low 3 pct range is consistent with the inflation target.
  • Weak Q1 productivity growth is an aberration.
  • People shouldn’t assume bank rate will rise to 2-3 pct range because shorter-term factors are pushing equilibrium interest rate below that.
  • If UK productivity, fiscal headwinds, and uncertainty improve, then equilibrium interest rate will move closer to 2-3 pct range.

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About Mark  Carney  

Mark Carney is Governor of the Bank of England and Chairman of the Monetary Policy Committee, Financial Policy Committee and the Board of the Prudential Regulation Authority. His appointment as Governor was approved by Her Majesty the Queen on 26 November 2012. The Governor joined the Bank on 1 July 2013.