Carney Says BOE May Need to Remove Stimulus as Slack Erodes
- Governor says tolerance of above-target inflation ‘limited’
- Officials will look at wages, growth in coming months
Bank of England Governor Mark Carney discusses monetary policy and the potential for removing stimulus at the ECB Forum on Central Banking in Sintra, Portugal. (Source: Bloomberg)
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Mark Carney said the Bank of England’s Monetary Policy Committee may need to begin raising interest rates and will debate a move in the next few months.
“Some removal of monetary stimulus is likely to become necessary if the trade-off facing the MPC continues to lessen and the policy decision accordingly becomes more conventional,” Carney said in prepared introductory remarks for a panel at the European Central Bank Forum on Wednesday in Sintra, Portugal. The pound rose after his remarks.