Carney Signals Bank of England Rate Can Stay Low as China Drags
- Officials vote 8-1 to keep key rate at a record low 0.5%
- Pound falls as investors push back bets for higher rates
BOE Trims Growth and Inflation Forecasts
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Mark Carney signaled the U.K. needs record-low interest rates for a while longer as China drags on the world economy.
“Monetary policy must continue to balance two fundamental forces -– domestic strength and foreign weakness,” the Bank of England governor said at a in London on Thursday. “The outlook for global growth has weakened since August. Many emerging-market economies have slowed markedly this year, and the committee has downgraded its assessment of their medium-term growth prospects.”