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12 Mar 2014
Flash: UK coming to the end of recovery - Investec
FXStreet (Guatemala) - The Investec treasury team explained that the positive outlook for the manufacturing sector came ahead of testimonies from a number of BoE officials before the Treasury Select Committee.
Key Quotes:
“BOE Governor Mark Carney said the U.K. economy is approaching the end of a recovery phase and should soon embark on a new expansion, allowing the central bank to roll back on the unprecedented stimulus in place since 2009 and return monetary policy to a more normal setting”.
“However Carney also commented that the level of spare capacity in the economy is higher than 1.5% of GDP which would mean that the Bank of England can afford to hold off raising rates for a significant period of time without risking stoking inflation”.
“It is important to note that there are differing views within committee on this, with Carney at the dovish end of the spectrum”.
Key Quotes:
“BOE Governor Mark Carney said the U.K. economy is approaching the end of a recovery phase and should soon embark on a new expansion, allowing the central bank to roll back on the unprecedented stimulus in place since 2009 and return monetary policy to a more normal setting”.
“However Carney also commented that the level of spare capacity in the economy is higher than 1.5% of GDP which would mean that the Bank of England can afford to hold off raising rates for a significant period of time without risking stoking inflation”.
“It is important to note that there are differing views within committee on this, with Carney at the dovish end of the spectrum”.