LONDON (Reuters) – The Bank of England’s approach to policy should be to “walk – not run”, Governor Mark Carney said on Thursday after the central bank raised rates to a new post-financial crisis high of 0.75 percent.
FILE PHOTO: The Governor of the Bank of England Mark Carney arrives to deliver a report at the Bank in London, Britain, June 27, 2018. Matt Dunham/Pool via Reuters/File Photo
Carney repeated the BoE’s view that rates are likely to rise only in a limited and gradual fashion, reflecting long-term changes to Britain’s economy and short-term factors like Brexit uncertainty and fiscal drag.
“Policy needs to walk – not run – to stand still,” Carney said in a speech after the BoE’s rate decision.
Sterling fell to a day’s low against both the dollar and euro on the comment.
Reporting by Andy Bruce; editing by Stephen Addison