28 Jan 2015
Rate hike path to be more gradual – BOE’s carney
FXStreet (Mumbai) - The Bank of England governor Mike Carney said today that the interest rate hikes in the UK would be more gradual than expected earlier.
On low inflation, the Governor said the generalized inflation pressures are low largely due to oil prices. He further stated that the temporary low inflation should help households, while stating that the inflationary pressures should pick up again in 12 months.
Mr. Carney also stated that the recent ECB’s actions are “timely and welcome”. However, the Governor also mentioned that the ECB alone cannot eliminate prolonged stagnation risk and that a more supportive fiscal policy would help Euro area.
On low inflation, the Governor said the generalized inflation pressures are low largely due to oil prices. He further stated that the temporary low inflation should help households, while stating that the inflationary pressures should pick up again in 12 months.
Mr. Carney also stated that the recent ECB’s actions are “timely and welcome”. However, the Governor also mentioned that the ECB alone cannot eliminate prolonged stagnation risk and that a more supportive fiscal policy would help Euro area.