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World

UK rates seen on hold as Carney stays put

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World

UK rates seen on hold as Carney stays put

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COMING UP:UK rates seen on hold as Carney stays put

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00:00:01
>> Mark Carney is sticking around, for an extra year at least. Now the focus is back on what the Bank of England governor is going to do. A policy announcement due Thursday, and few are now expecting any move on rates. Though the bank had hinted at another cut, the economy has since proved stronger than expected.
00:00:19
So far it seems to have shrugged off any Brexit impact, reducing the calls for stimulus. Reuters senior UK economics correspondent David Milliken says policy makers are looking further ahead.>> The central bank is likely to be concerned that Britain is heading in for a difficult two years or so as it enters European Union exit talks.
00:00:39
And so it may well be considering whether it might need to loosen monetary policy at some point in the not too distant future. The difficulty, really, for them is whether they think that Thursday is the right time to talk about that, or whether they'll want to gather more information about how the economy develops.
00:00:54
>> The fallout from the row over Carney's leadership still being felt. Backers of Brexit wanted him gone. They say he's too biased against leaving the EU. Relations with the very top reaches of government also strained.>> Prime Minister Theresa May's comments sort of early last month that quantitative easing has created bad side effects are still likely to cast some kind of shadow.
00:01:16
I think people will be thinking, is the Bank of England going to be that bit more cautious before it does any more quantitative easing or comes up with sort of any further measures to stimulate the economy?>> Some had feared that May's comments signaled an attack on the bank's independence.
00:01:30
Those concerns have now eased. But Carney's critics remain vocal. The Bank of England boss will have to watch his words even more closely than usual.