The BOE governor speaking on BBC tv’s Andrew Marr show earlier this morning and repeating his concerns from the Quarterly Inflation statement that improving productivity remains a priority, and moving the goal posts on forward guidance
The path of monetary policy, the path of interest rates, is going to be calibrated very carefully to ensure that only when we see sustainable growth in jobs, income and spending will we make adjustments
We can take our time and only adjust interest rates once more slack has been cut
- BOE must be very conscious of UK’s history of boom and bust in housing market
- Help to Buy scheme is not driving the housing market but BOE will keep a close eye on it
- banks would be prevented from paying increased bonuses if that would cause capital levels to fall
- Eurozone has to move to some form of greater fiscal union
- uncertainty over membership of EU not good for encouraging investment
Nothing in his comments that’s going to send any shudders through the market
The BBC has more here and the programme itself is on Iplayer here. Carney kicks in at 22.02 on the slider