- Mark Carney, BoE Governor
Testifying before a treasury select committee, Bank of England Governor Mark Carney reiterated that the current, record-low interest rates in Britain are likely to continue "for some time", explicitly signalling that the central bank is in no hurry to raise rates. UK interest rates have remained at 0.5% since March 2009. Given the current weak pace of growth and persistently low inflation, most economists do not expect the BoE to hike rates until at least the second quarter of 2016. British consumer prices dropped by 0.1% in October, and are expected to stay close to zero for a few more months.
Following the dovish comments from Carney, BoE chief economist Andrew Haldane said the UK economy and inflation outlook are skewed downward amid external headwinds. Haldane said that the central bank should be even ready to slash interest rates if needed and a "third phase" of the global financial crisis, stemming from emerging markets, could have a prolonged impact on the global growth. Supporting this view, Kristin Forbes, a member of the rate-setting Monetary Policy Committee, said if there is any unexpected shock, she could consider further loosening of the policy.
© Dukascopy Bank SA