Bank of England chief Carney raises expectations of August rate rise

Lloyd Doyle
July 8, 2018

During a speech at the Northern Powerhouse Summit in Newcastle, Mr.

The governor of the Bank of England told an audience in Newcastle there were signs of damage to global economic activity as the United States president targets trade imbalances - with the world's second-largest economy now firmly in his sights after tit-for-tat measures against the EU, Canada and Mexico.

Sir Jon Cunliffe, the Bank's deputy governor for financial stability, in effect joint number two to Governor Mark Carney, will address a Cumbria Chamber of Commerce lunch in Kendal on Friday.

He said the final reading of economic growth for the first quarter, which was revised up from 0.1% to 0.2% last week, confirmed his view of the UK's trajectory. However, this was mainly due to the weaker, Mr. Not only have they increased but they have also 'bounced back strongly'.

Winning the 2018 FIFA World Cup would be marvelous for the British economy.

"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".

Asked about the economic impact if England win the tournament for the first time since 1966, Carney said: "It would be an unalloyed, unadulterated, absolute good".

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

In this scenario, raising interest rates would be appropriate to return inflation to its target, according to Carney. We also refer to the interest rate as the 'base rate.' Americans call it the 'federal discount rate'.

The Bank of England's rate-setting Monetary Policy Committee is due to meet again in August.

Six MPC members, including Mr.

"For example, survey measures of global export orders and manufacturing output have fallen back from highs at the start of this year", added Canadian national Carney, whose own country is embroiled in a cross-border trade war with the US.

Andy Haldane joined Michael Saunders and the hawkish outgoing-MPC member Ian McCafferty in calling for an immediate rate rise, however the majority held off after the bad weather caused a slump in GDP growth.

Other reports by Iphone Fresh

Discuss This Article