8 Aug 2013
Carney: UK GDP could grow more owing to forward guidance
FXstreet.com (Barcelona) - BoE Governor Mark Carney said today on the BBC Radio 4 Today show that the changes he had introduced to the central bank's monetary policy so far could have a positive impact on UK's growth.
The BoE's decision to introduce forward guidance, which involves keeping interest rates at historic lows until the unemployment rate drops to 7%, could add "more than half a percentage point of GDP" to the UK economy, Carney suggested emphasizing however that this forecast should be taken with reservations.
On Wednesday Mark Carney held hist first press conference as BoE chief, following the release of the BoE's quarterly Inflation Report, which gave the details of the recently introduced forward guidance on rates.
The BoE's decision to introduce forward guidance, which involves keeping interest rates at historic lows until the unemployment rate drops to 7%, could add "more than half a percentage point of GDP" to the UK economy, Carney suggested emphasizing however that this forecast should be taken with reservations.
On Wednesday Mark Carney held hist first press conference as BoE chief, following the release of the BoE's quarterly Inflation Report, which gave the details of the recently introduced forward guidance on rates.