24 Jun 2014
BoE Carney's testimony: Falling wages suggest more spare capacity than thought
FXStreet (Łódź) - BoE governor Mark Carney, who is testifying before the Treasury Select Committee says that he expects a later rather than earlier exit from stimulus.
• When asked about the lost productivity in the UK Carney says that the productivity gap is currently probably 16%, compared to the pre-crisis trend.
• Pace of UK job creation remains strong but wage data has been weaker than expected.
• Wage developments suggest there is more spare capacity in the labor market than previously thought.
• Economic growth is likely to be stronger than projected over the next two years.
• When asked about the lost productivity in the UK Carney says that the productivity gap is currently probably 16%, compared to the pre-crisis trend.
• Pace of UK job creation remains strong but wage data has been weaker than expected.
• Wage developments suggest there is more spare capacity in the labor market than previously thought.
• Economic growth is likely to be stronger than projected over the next two years.