FXStreet (Bali) - Bank of England Governor Mark Carney, in an interview with the Sunday Times over the weekend, said he would not wait for real wages to turn positive before starting a hiking cycle in the UK.

"We have to have the confidence that real wages are going to be growing sustainably (before rates go up). We don't have to wait for the fact of that turn to do so", Carney told the Sunday Times.

Carney also suggested that some additional capital may have t be raised by some UK banks in order to comply with stricter regulator's stress tests demands, although Carney recognized that "substantial progress" was made.

On the economy, Carney said that "wherever the finish line was in the depths of the crisis, we are much more than halfway towards that finish line now."

Carney added that "the expansion is proceeding, momentum is more assured; and the very fact we have had consistent quarters of growth in line with, or slightly better than, our forecasts shows that fact."

Carney also said that the strength in the Sterling would not prevent a hike in rates, noting that "even with such appreciation, inflation gets back to target by the end of the forecast period because slack narrows..."

"Monetary policy is heading in a different direction in at least two of the four, and we will do what we need to do," Carney said.

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    GBP/USD back above 1.57, awaits UK Q1 GDP

  2. Forex News

    Pound May Fall on UK GDP, Euro Engulfed in Greece Crisis Fallout

  3. Forex News

    GBP/USD forecast: Likely to dip towards 1.5667 – FXStreet

  4. Forex News

    GBP/USD to Eye June High on Stronger U.K. 1Q GDP

  5. Forex News

    GBP/USD Technical Analysis: Oscillating in Familiar Range

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!