BoEs Carney says UK economys spare capacity may be more than 1.5 percent Bank of England Governor Mark Carney said on Tuesday the amount of spare capacity in Britains economy is probably slightly more than 1.5 percent, putting him on the dovish side of views on the Monetary Policy Committee. We ranged in the February inflation report (that spare capacity) was 1-1.5 percent, said Carney in comments to lawmakers. I personally would be at the upper end of that range and I would add that the margin, given the most recent employment report, that it would probably be slightly higher than that 1.5 percent. Output is still just below its peak in the first quarter of 2008 - a much weaker state than in most other big advanced economies. The BoE is concerned that low productivity may limit Britains ability to catch up without generating higher inflation in the medium-term.
Posted on: Tue, 11 Mar 2014 10:02:06 +0000
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