"At this stage most of the growth in momentum is coming from the household sector and there's a pick-up in the housing market from quite low levels"
- Mark Carney, BoE Governor
The U.K. is currently leading the economic recovery in the whole Europe, as the nation's economy expanded at the fastest rate in over three years in the third quarter, due to the fact attractive funding conditions and a flurry of investment boosted business confidence. Additionally, more than 60% of respondents to the Association of Chartered Certified Accountants said economic conditions have improved in the three months to September 30. Nevertheless, economists argue the pace of growth may not be long-term sustainable, as it is mostly led by an uneven pattern in the country's property market. The pace of growth of housing values in London is even outpacing the pace of inflation.
In order to address growing speculations about a possible housing bubble, Mark Carney pledged to use the full range of instruments to help rebalance the economic amelioration in different parts of the country. Carney warned that even though the U.K. is one of the fastest growing economies in the world, it is still around 30% below the level seen before the recession. Moreover, he stressed out there has not been seen any momentum in Wales, and said Britain's authorities will do everything they can to build the ongoing recovery on the back of strong private sector. What is more important is that Carney hinted the BoE may give a sense of when the economy may reach the 7% jobless threshold during its next policy meeting on November 7.
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