The BOE’s Governor Mark Carney hold today a press conference through which brought positive news for the British economy and the worldwide investors. Considering the recent events, we can observe a sustained growth rate, even if the Euro zone is still transmitting an instability feeling.
Analyzing the recent developments, July may be considered the latter period of worrying, when they raised the issue of households and companies which seemed to move more slowly. Also during this period, inflationary pressures were considered as priority issues. Moving forward in August, Bank of England looks ready to intervene if the situation demands it. In fact, it did nothing but encourage the rhythm of growth that already started. In October, having the benchmark maintained at 0.5% and the stimulus program in place, the unemployment rate started to slow down and the GDP advanced 0.8% (mainly sustained by the services sector).
Today, the BoE’s officials could proudly affirm that the British economy is strongly recovering. The unemployment rate decreased to 7.6%, closer to the Bank of England’s key threshold of 7%. Economists are now tempted to see the key threshold touch late in 2014, two years earlier than it was expected in August. Yet, some realistic voices suggest 2016 as a more appropriate term for the unemployment rate to rich the desired verge. Likewise, Mark Carney announced that the central bank raised its growth forecasts for 2013 by 1.6% and for 2014 by 2.8%.
After the aforementioned mentioned news released, investors started worrying about an interest rate increase, but Mark Carney assured everybody that and interest rate increased increase is not taken into consideration at least until the unemployment rate gets to 7%. He also highlighted that the economy condition of the country is giving the impulses for changes in any of the Central Bank’s tools.