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11 Mar 2014
Carney: UK recovery picking up but BoE not growing complacent
FXStreet (Łódź) - Further into the testimony before the UK parliament's Treasury Select Committee on Tuesday, BoE governor Mark Carney assures that his decision on the rate hike timing would not be affected by the UK general election scheduled for May 2015.
Moreover, Carney says he expects a pick up in investment, which is crucial for spurring growth. He emphasizes that the strengthening of the UK economic recovery is evident in recent data, Nevertheless, he admits that the decrease in unemployment has slowed down somewhat. BoE is not complacent about the UK recovery, he says.
Meanwhile, MPC member David Miles assures that optimism among small and medium-sized firms in the UK has risen since he has joined the committee in 2009. He also adds that real wages could stop declining shortly.
“I think we’re getting to the point at which average wage settlements are moving above the rate of inflation,” he suggests.
Moreover, Carney says he expects a pick up in investment, which is crucial for spurring growth. He emphasizes that the strengthening of the UK economic recovery is evident in recent data, Nevertheless, he admits that the decrease in unemployment has slowed down somewhat. BoE is not complacent about the UK recovery, he says.
Meanwhile, MPC member David Miles assures that optimism among small and medium-sized firms in the UK has risen since he has joined the committee in 2009. He also adds that real wages could stop declining shortly.
“I think we’re getting to the point at which average wage settlements are moving above the rate of inflation,” he suggests.