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The Global Economic Outlook Is Unclear. Carney Suggests Or Postpones Raising Interest Rates.

2014/10/13 21:39:00 18

Global EconomyCarneyRaising Interest Rates

The uncertainty of the global economic outlook will affect the central bank's decision making. Carney, President of the BOE, said on Monday (October 13th) that when the interest rate decision was made, factors such as the weakness of the euro area economy would be taken into account in the interest rate decision making, Mark (Carney).

Carney did not announce any changes to the policy, but he made it clear that the central bank would take into account the recent developments in the economic situation in the central bank's decision.

  

International Monetary Fund

(IMF) announced last week that it lowered the global economic growth forecast in 2014 and 2015, which is also the third degree reduction of economic growth expectations in IMF.

Carney said in an interview, "the global economy is weakening in a wide range, especially in the

emerging market

Europe and Europe are officially Britain's largest trading partners. "

"We must take into account the possibility of a more moderate global economic recovery, especially in Europe," he said.

In addition, we will focus on the labour market, which is just as important as external development. "

Market analysts pointed out that Carney's speech or implied his attitude pformation.

Previously, he has always reiterated that "interest rates are getting closer."

However, he said this time, "in view of the global economic potential and global demand weakening, this will create a very benign inflation environment, and we will take this into account."

  

Carney

The implication of this remark is no doubt that the pressure on the global inflation environment is not great. British inflation will remain at a reasonable level, and the central bank's pressure to raise interest rates will be reduced.

Carney is not very worried about the recent global financial market volatility.

He said that the global market has just come out of a long period of low volatility. The recent market turmoil simply reflects the changes in the central bank's monetary policy and the differentiation between the economies.

In addition, Carney also pointed out that he was fully confident of the European Central Bank, while supporting Delaki's remarks on the implementation of fiscal and structural reforms.


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