Breaking News: UK Interest Rates "Too Low for Too Long", Former Bank of England Boss Claims
LONDON, [Current Date] – Former Bank of England (BOE) Governor Mark Carney has sparked fresh speculation about a potential rate rise, stating that UK interest rates have been "too low for too long" in a recent interview with a leading financial publication.
Carney, who helmed the BOE from 2013 to 2020, has suggested that the current Monetary Policy Committee (MPC) may need to revisit the 0.75% base rate, citing concerns about asset valuations and the economy’s underlying growth prospects.
"As I’ve said before, interest rates have been low for too long," Carney said. "Central banks need to consider whether the current stance of policy is consistent with maintaining the stability of the financial system."
Carney’s remarks have sent shockwaves through the financial markets, as investors await the outcome of the BOE’s latest Monetary Policy Committee meeting next month. The Governor added that while the Committee "must carefully consider" its options, he is cautiously optimistic about the outlook.
"We are seeing a solid economic recovery, supported by fiscal policy and investment growth," Carney continued. "However, central bankers must also be aware of the potential risks from monetary policy being too lax, which could lead to higher inflation and asset prices disconnecting from reality."
According to a recent forecast, the BOE’s policymaking body is now expecting UK GDP growth to be 0.2 percentage points lower than previously expected in the coming quarters due to a slowdown in productivity growth and a softer response to global trade developments.
As a result, bets on a rate rise continue to intensify among major banks and financial institutions. Many economists now anticipate an increase in the BOE’s benchmark rate before year-end, with a slight majority forecasting a quarter-percentage point hike at the November MPC meeting.
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[Business] – Rates low for too long, says ex-Bank of England boss
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