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14 May 2014
BoE's Carney: UK labor market slack continues
FXStreet (Łódź) - Following the release of the BoE's Quarterly Inflation Report in which the central bank hiked growth forecasts, Governor Mark Carney comments that the UK economy is continuing to perform strongly.
• "The economy has started to head back to normal," the BoE head assures, adding that the "expansion is sustained by business investment," rather than by consumer spending.
• Carney recognizes however that “significant slack remains in labor market.”
• BoE head reiterates pledge to keep rates low, adding however that the UK economy is moving closer to the “point at which bank rate will gradually need to rise.”
• Developments in China's economy pose downside risks for the Eurozone.
• “Current low inflation can be partly attributed to one-off factors.”
• "The economy has started to head back to normal," the BoE head assures, adding that the "expansion is sustained by business investment," rather than by consumer spending.
• Carney recognizes however that “significant slack remains in labor market.”
• BoE head reiterates pledge to keep rates low, adding however that the UK economy is moving closer to the “point at which bank rate will gradually need to rise.”
• Developments in China's economy pose downside risks for the Eurozone.
• “Current low inflation can be partly attributed to one-off factors.”