Governor Mark Carney took a guarded stance this week at the Bank of England’s (BoE) Quarterly Inflation Report (QIR); focusing on the risk factors facing the British economy and the perils of raising interest rates too soon. Specifically Carney singled out Sterling’s performance against the Euro as a headwind facing inflation growth and that its strength was “relevant” for the path of interest rates.
Additionally, and in a nod to Conservative campaign promises, Carney noted that the BoE was conscious of the impact fiscal policy could have on economic growth. He added that the BoE would consider fiscal policy in confluence with its own policy measures.
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