Carney Pushes Low-Rate Message as Weale Dissents on Slack
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Bank of England Governor Mark Carney pushed his message that there’s no rush to increase U.K. interest rates, saying there may be more slack in the economy than the central bank’s calculations show.
Speaking to lawmakers today, he said the amount of spare capacity is “at the upper end” of the 1 percent to 1.5 percent of gross domestic product estimated by the BOE in its Inflation Report last month. His comments underline a key area of divergence among officials, after policy maker Martin Weale said the level of slack may be overstated.