LONDON – Bank of England Governor Mark Carney has stressed that interest rates won't rise any time soon even though the British economy is growing stronger than anticipated.
With wages and price pressures subdued and the recovery not spread equally through the country, Carney says now is not the time to raise interest rates.
In the bank's quarterly economic projections Wednesday, he reinvented his policy of forward guidance to give people a better sense of when rates might rise. Carney says the bank will consider a range of parameters before deciding to raise rates.
Carney introduced "forward guidance" when he took the job last summer, saying the bank wouldn't raise record-low interest rates before unemployment dropped to 7 percent. He was forced to update that policy because unemployment is nearing that level.