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14 May 2014
BoE's Carney: Rates will rise when economy 'returns to normal'
FXStreet (Łódź) - The BoE head suggests that when interest rates start to grow, the rise will be "gradual and limited.”
• The QE program will continue until “interest rates are at a level when they could be cut, materially.”
• The FPC will manage housing risks in UK, the monetary policy is not the “right tool” for handling house prices.
• When asked about the timing of the first rate hike during the Q&A session, Carney refuses to give a clear answer, saying that it will happen when the economy returns to normal.
• “Escape velocity is when growth is balanced. If we want to see sustained balance, wages must grow.”
• The QE program will continue until “interest rates are at a level when they could be cut, materially.”
• The FPC will manage housing risks in UK, the monetary policy is not the “right tool” for handling house prices.
• When asked about the timing of the first rate hike during the Q&A session, Carney refuses to give a clear answer, saying that it will happen when the economy returns to normal.
• “Escape velocity is when growth is balanced. If we want to see sustained balance, wages must grow.”