Carney: UK interest rate rise on agenda despite China woes
29 August 2015
From the section Business
The decision on when to raise interest rates is still likely be at the top of the Bank of England’s agenda at the turn of the year, the governor said this afternoon – even though he acknowledged that China’s economic slowdown means the world’s second biggest economy is likely to be a drag on growth in the whole world.
Mark Carney, speaking at the annual Jackson Hole convention in the US of central bankers and economists, said: “The prospect of sustained momentum in the UK economy and the gradual firming of underlying inflationary pressures will likely put the decision as to when to start the process of gradual monetary policy normalisation [or interest rate rises] into sharper relief at the turn of this year.”
Which is another way of saying that he stands by the economic timetable for possibly raising rates that he set out in Lincoln Cathedral on 16 July.
He was giving his first response to the rout in shares on the Shanghai stock market over the past few days – a rout which for a couple of days infected stock markets all over the world.
Mr Carney said …read more
Source:: BBC UK