The Bank of England Governor, Mark Carney, has warned of further interest rate pain ahead for consumers and businesses. Speaking at a press conference on Wednesday, Carney said that the Bank was likely to keep interest rates low for some time to come, due to the uncertain economic outlook.
Carney said that the Bank was likely to keep interest rates low in order to support the UK economy, which is still struggling to recover from the financial crisis of 2008. He warned that the Bank would not be able to raise interest rates until the economy was on a more stable footing.
The Bank of England has kept interest rates at a record low of 0.5% since 2009, and Carney said that this was likely to remain the case for some time. He said that while the Bank was monitoring the economic situation closely, it was not yet in a position to raise interest rates.
The Governor’s comments come as the UK economy continues to struggle with weak growth and rising inflation. The Bank of England recently revised down its growth forecast for 2017, and inflation is currently running at 2.3%, well above the Bank’s target of 2%.
Carney warned that further interest rate pain was likely in the near future, as the Bank of England seeks to balance the need to support growth with the need to keep inflation under control. He said that while the Bank was monitoring the situation closely, it was not yet in a position to raise interest rates.
The Governor’s comments are likely to be welcomed by businesses and consumers, who have been struggling with low interest rates for some time. However, they will also add to concerns about the UK economy, which is still struggling to recover from the financial crisis of 2008.
It remains to be seen whether the Bank of England will raise interest rates in the near future. In the meantime, consumers and businesses should prepare for further interest rate pain ahead.