News Column

REPEAT: Carney Says BoE Won't Wait Real Wages To Rise Before Lifting Rates - Report

August 17, 2014

LONDON (Alliance News) - The Bank of England would not wait for real wages to rise before raising bank rate from its current 0.50% level, Governor Mark Carney said in an interview.

"We have to have the confidence that real wages are going to be growing gradually" before raising rates, he told the Sunday Times. "We don't have to wait for the fact of that turn to do so," he added.

In the quarterly Inflation Report, released on August 13, the bank said future developments on wages would have a greater influence on interest rate decision. The bank suggested that the rates will not rise soon as wage growth remain subdued and the economy faces challenges from external environment.

Carney said the UK is "more than halfway" to economic recovery, Carney told Sunday Times. The interest rate will have to rise from record low. So the people should plan accordingly, said Carney.

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Source: Alliance News

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