Home Carney speech: Shorter-term factors are pushing equilibrium interest rate below 2-3% range
FXStreet News

Carney speech: Shorter-term factors are pushing equilibrium interest rate below 2-3% range

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.

Related articles

BoE MPC votes 9-0 to raise interest rates by 25bps.

In its latest monetary policy meeting, held this Thursday, the BoE MPC voted 9-0 in favour of raising its key lending rate by 25 basis points to 0.75%.

GBP/USD under pressure near 1.3020 on Carney.

After moving above 1.3100 the figure in the wake of the BoE’s interest rate hike,  GBP/USD  has now come under further selling pressure and probes lows around 1.3020.

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.

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.