Mark Carney, Head of the Bank of England, said it’s too early to talk about a rate hike. It’s not time for correction yet. According to him, there are no relevant signals to address this issue. In particular, low wage growth rates ease inflationary pressures.
Mark Carney also noted that there is no consensus in the Monetary Policy Committee on the timing of interest rate increases. However, all members of the Committee agree that the changes will be gradual and limited.
At the meeting of the Monetary Policy Committee held in early June, it was decided to keep the key rate at 0.25 percent. But this decision, for the first time in ten years, was not unanimous. Three members of the Monetary Policy Committee considered it necessary to raise the key rate. The Governor of the Bank of England voted to keep it.
Mark Carney also announced the presence of uncertainty. He cannot predict the reaction of the British economy to the upcoming negotiations with Brussels on the country’s exit from the European Union.