Finance News

Carney prepares to bow out with hints of a possible rate cut

Warren Lewis
10th January 2020
bank of england boe

On the 16th March, Mark Carney, will be replaced by Andrew Bailey as the Governor of the Bank of England and take up a new role as a United Nations climate envoy.

In one of his last speeches in the job, Carney confirmed that the UK economy had been sluggish during recent months, despite wider signs of stabilisation in the world economy, saying "slack has been growing, and inflation is below target."

Carney said that the MPC were debating "the relative merits of near term stimulus" and suggested they would closely monitor the strength of the economy in the run-up to its regular meeting to set interest rates at the end of the month.

Carney’s comments come after the Monetary Policy Committee were split 7-2 at their last meeting, where they held the bank rate at 0.75%. Santander’s chief economist, Frances Haque, called the decision ‘widely expected’ at the time due to the general election.

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