A barrel of Brent crude is actually cheaper now than it was three months ago at
Why? Because nowadays the West is not so dependent on the
And thanks to shale oil, US oil production has actually surpassed imports for the first time in 20 years.
Every regime tends to want to keep the oil flowing to make sure the money keeps rolling in.
British petrol retailers are responding with the average price of a litre of unleaded down nearly 6 per cent to 130p on the year.
IT'S hard to tell if
But, as he drained his glass, Carney also indicated that weak wage growth could push back the first rise in interest rates from their historic low of 0.5 per cent.
He believes that the economy is further from its full potential than the strong figures on falling unemployment and rising output imply.
However, it was Carney's comments in June at the Mansion House which the market took to imply rate rises coming sooner rather than later that made sterling soar.
At the time the Bank was predicting that wages would pick up along with the economy. But now Carney suggests that wages will rise by just 1.25 per cent this year, compared with the 2.5 per cent he was predicting just a few short weeks ago.
Nevertheless, Carney's caution is well-founded as a quick look across the Channel to the parlous eurozone will testify.
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