Carney: U.K. Economy Still Faces Headwinds

Bank of England (BoE) Governor Mark Carney played down expectations of an earlier-than-expected rise in interest rates on Wednesday, despite signs of a pickup in the U.K.’s economic recovery.

Speaking at a press conference following the publication of the BoE’s quarterly inflation report, Carney said a hike in rates would depend on the degree of slack in the U.K. economy, and the prospects for its absorption.

“The economy has edged closer to the point at which the bank rate will need—gradually—to rise,” Carney said, but stressed that discussions of timings should be kept “in perspective.”


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