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12 Mar 2014
Flash: UK economy towards economic expansion - Investec
FXStreet (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec, notes the good outlook for the UK economy.
Key Quotes
"The positive outlook for the manufacturing sector came ahead of testimonies from a number of BoE officials before the Treasury Select Committee. 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
"The positive outlook for the manufacturing sector came ahead of testimonies from a number of BoE officials before the Treasury Select Committee. 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."