Carney hints at August rate rise as United Kingdom economy rebounds

Bank of England governor Mark Carney upbeat on UK growth

Bank of England governor Mark Carney upbeat on UK growth

The governor of the Bank of England told an audience in Newcastle there were signs of damage to global economic activity as the U.S. president targets trade imbalances - with the world's second-largest economy now firmly in his sights after tit-for-tat measures against the EU, Canada and Mexico.

Last month investors were surprised when three out of nine BoE rate-setters, more than expected, voted for an immediate rise in rates, boosting the chances of an increase in August.

"Domestically, the incoming data have given me greater confidence that the softness of United Kingdom activity in the first quarter was largely due to the weather, not the economic climate", Carney said in a speech to be delivered in Newcastle, north England.

The Bank of England's governor, Mark Carney, gibed US President Donald Trump over his tweeting habits.

In a speech given at the Northern Powerhouse Business Summit, Carney noted that employment is at a record high, real wages are rising, and "domestic inflationary pressures are gradually building to rates consistent with the inflation target".

However, he also warned that a global trade war could dampen economic growth.

He said he broadly viewed those expectations as reasonable.

Data points to a pick-up in growth in the second quarter of the year, after a disappointing start to 2018, according to the chief monetary policymaker.

"There are some tentative signs that this more hostile and uncertain trading environment may be dampening activity".

Mr Carney said that while the Bank of England has been able to prop up the economy in the wake of the Brexit vote, conditions would not be as favourable in an all-out trade war.

Carney said the Bank of England forecasts suggested as much as 1% could be knocked off global growth by the trade war.

Mr. Carney said a Bank of England analysis suggests that raising average tariffs between the US and its major trading partners by 10 percentage points could cost the USA 2.5% of gross domestic product over three years.

Businesses "have been wondering whether changes to trading arrangements will require them to switch suppliers or find new customers, whether to expand production or even close down certain activities", he said. A commercial bank, for example, is a financial institution.

Recommended News

  • North Korea says talks with Mike Pompeo were 'regrettable'

    They were expected to talk all day Saturday before Pompeo heads to Tokyo to brief Washington's Japanese and South Korean allies. Talks will also cover the possibility of recovering the remains of U.S. troops missing from the Korean War.
    Google's controversial human sounding AI is being tested for call centres

    Google's controversial human sounding AI is being tested for call centres

    The company this afternoon denied The Information's report on "very early stage" testing of Duplex for call centers. The robots on the other side of the customer support line could soon start to sound a lot more human.
    Belgium's Thibaut Courtois says he 'never mocked' Jordan Pickford

    Belgium's Thibaut Courtois says he 'never mocked' Jordan Pickford

    I would never mock the height of a goalkeeper - I think that he's a great goalkeeper , he proved that previous year . Fittingly, it was a side coached by him that, 22 years later, brought shootout salvation for England .
  • Tyler Honeycutt dies following gunfire exchange with police

    Tyler Honeycutt dies following gunfire exchange with police

    After being waived by the Rockets, Honeycutt went to Europe, where he most recently played with BC Khimki in Russian Federation . He also had stints with Israeli team Ironi Nahariya and in Turkey with Anadolu Efes .
    Trump reportedly asked aides about invading Venezuela a year ago

    Trump reportedly asked aides about invading Venezuela a year ago

    Two high-ranking Colombian officials confirmed the report. "If Venezuela were attacked, the rifles will arrive in New York, Mr. Even some of the staunchest USA allies were begrudgingly forced to side with Maduro in condemning Trump's saber rattling.
    South Korean basketball players arrive for games in North

    South Korean basketball players arrive for games in North

    Before Trump and Kim met in Singapore, North Korea destroyed parts of its Punggye-ri nuclear test area. He is expected to meet with North Korean leader Kim Jong Un and other officials.
  • U.S. Border Patrol reportedly stops Canadian vessels in disputed waters

    U.S. Border Patrol reportedly stops Canadian vessels in disputed waters

    In a Facebook post , Laurence Cook-a member of Grand Manan Fishermen's Association-alleged that in a June 24 boat check, U.S. The Border Patrol described the encounters in the Atlantic as "regular patrol operations to enforce immigration laws".
    European Parliament rejects EU copyright law

    European Parliament rejects EU copyright law

    The legislation proposes a "link tax", requiring companies such as Facebook or Google to pay a news source for any stories they link.
    Apple Music Now Has More Subscribers Than Spotify in the U.S.

    Apple Music Now Has More Subscribers Than Spotify in the U.S.

    Three years after making its debut, it is being reported that Apple Music has surpassed Spotify's paid US subscriber count. Additionally, the new data projects that Apple Music will widen the distance between Spotify in the coming months.
  • Will Scotland get a hosepipe ban?

    Will Scotland get a hosepipe ban?

    Night-time restrictions are now imposed across more than 40 water supply schemes, with more than 100 more under threat. However Irish Water was quick to allay fears that homeowners would not be able to water their flowers and lawn.
    Oil near 3.5-year high despite Trump's beef with Opec

    Oil near 3.5-year high despite Trump's beef with Opec

    Lately, drop in U.S. inventories for the straight second week and a threat from Iranian commander also helped prices to surge. The oil price has risen 70% in the last 12 months, from 45$/ barrel for Brent in June 2017 to around 80$ in May 2018.
    Star Wars Episode IX may reportedly cast Keri Russell

    Star Wars Episode IX may reportedly cast Keri Russell

    Russell rose to fame for her role in Felicity as the eponymous protagonist which aired in the late 90s and early 00s. According to the trade, Keri Russell's Episode IX role calls for action-heavy fight scenes.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.