Bank of England Governor Mark Carney says interest rates will remain low as forces holding them down persist.
There will be no move in rates until incomes, jobs and spending all recover, the Bank Governor has said.
Mark Carney said in an interview that impediments to the economic recovery keeping UK interest rates at a record low will continue and that borrowing costs won’t increase until the labour-market slack is diminished. The Canadian Governor also stated rates will not go up until people and organisations begin to share in the economic recovery.
As the BOE increased its growth estimates for Britain last week, Mark Carney has highlighted his vow to keep the bank rate at 0.5 percent “for some time”. Interest-rate rises will be “limited” and won’t happen until the economy is powerful enough to hold out, he said.
The BOE has hinted that rates are expected to begin to climb after the general election next year.
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