Carney is the headliner in the latest issue of Bloomberg Markets
Mark Carney spoke with Bloomberg about a month ago in a wide-ranging interview but the comments were just published today.
He avoids anything that's a direct comment on monetary policy but his underlying bias (which is longstanding) towards better growth and higher rates is obvious.
"If I talk globally-so not specifically for the U.K.-I think that to talk in absolute terms of interest rates and effective interest rates if you talk about quantitative easing, it's more likely than not that the equilibrium level of policy has begun to rise. In other words that the balance of savings and investment is such globally that some of the extreme pressures on r* [the neutral level of real interest rates] have begun to abate. That's a cyclical point. Structurally the forces go both ways. There is more balance in the risks around the stance of policy. But any given jurisdiction has to take into account its own domestic forces, whether there are headwinds from fiscal policy, headwinds from uncertainty, headwinds from trade discussions or other factors," he says.
On trade, he notes that the impacts and announcements so far are small but warns that it could quickly get out of hand and that "there are some tentative signs that this more hostile and uncertain trading environment may be dampening activity."
