Bank of England Carney Says Now is Not Time to Raise Rates

January 19th, 2016 7:07 am | by John Jansen |

A fully paid up subscriber from across the pond forwarded this to me moments ago. I have a feeling that the FOMC will be using this as model when they issue a similar statement in a few months.

Via a fully paid up subscriber:

BOE: Carney: Now is not the time to start tightening monetary policy
– Due to oil price fall, inflation will likely be “very low for longer”
– Powerful secular, cyclical, domestic, global forces keeping rates low
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BOE Governor Carney says the turning of the year has brought the decision over when to raise rates into clearer focus, stating the decision was straightforward – now is not the time. Carney argues that there has been insufficient progress towards the inflation target to warrant a tightening in policy, as world and UK growth has slowed, while inflation will likely be ‘very low’ for longer. Carney adds that the precise path for Bank Rate cannot be pre-ordained, it will be driven by economic developments and not the calendar. He adds there will be no MPC pre-committments beyond sticking to their remit, noting the committee will do the “right thing at the right time” on rates.

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  1. One Response to “Bank of England Carney Says Now is Not Time to Raise Rates”

  2. By John M on Jan 19, 2016 | Reply

    A question for central bankers… European bank stocks are in a free-fall, so why are they talking about meaningless interest rates at the zero bound?

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