News Column

BoE’s Carney ties rate rise to sustainable growth in jobs, incomes

February 17, 2014



LONDON, 17 Feb: The Bank of England will only start to increase interest rates when the economy is operating at closer to full capacity, central bank governor Mark Carney said in an interview broadcast on Sunday.

The path of monetary policy, the path of interest rates is going to be calibrated very carefully to ensure that only when we see sustainable growth in jobs, in incomes and in spending, will we make adjustments," he told the BBC.

On Wednesday the BoE said it would look at a broader range of measures of slack in the economy than just the unemployment rate when considering whether to raise borrowing costs.

Carney also said that while he was concerned about Britains history of booms and busts in house prices, a government scheme to aid home-buyers, Help to Buy, was not currently a major factor in boosting prices.


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Source: Daily Messenger (Pakistan)


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