BoE Governor Confident in UK Economic Growth

The Bank of England governor now has more confidence in the UK economy, in a speech which could stoke expectations of an interest rate rise in August.

Mark Carney said recent data had given him “greater confidence” that weak first-quarter growth “was largely due to the weather”.

He said household spending and sentiment had “bounced back strongly”.
England winning the World Cup would be an “unalloyed, unadulterated absolute good” for the economy, Mr Carney added.

In a speech at the Northern Powerhouse Summit in Newcastle, Mr Carney said: “Overall, recent domestic data suggest the economy is evolving largely in line with the May Inflation Report projections, which see demand growing at rates slightly above those of supply and domestic cost pressures building.”

The pound edged up 0.2% against the dollar to $1.3254 following his remarks.

Last month, three members of the Bank of England’s Monetary Policy Committee – including chief economist Andy Haldane – voted in favour of lifting the interest rate to 0.75%.

Mr Carney was among the six MPC members who voted to keep rates on hold at 0.5%.

He also warned that a global trade war could dampen economic growth.

Mr said “protectionist rhetoric” was rising and was now turning into action: “There are some, tentative signs that this more hostile and uncertain trading environment may be dampening activity.”

vai BBC

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