BOE’s Carney: Now is not yet the time for rate adjustment

The much-awaited Mansion House speech by the Bank of England (BOE) Governor Mark Carney is now underway, with the central bank chief noting the following:

Now is not yet the time for rate adjustment given mixed signals on consumer spending and business investment

As spare capacity erodes, the trade-off that the MPC must balance lessens, its tolerance for above-target inflation falls

Rates are currently appropriate given the still subdued domestic inflationary pressures and in particular anaemic wage growth

Would like to see extent to which weaker consumption growth is offset by other components of demand

Monpol cannot prevent the weaker real income growth likely to accompany the transition to new trading arrangements with the EU

Key Notes:

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