Bank of England chief accused of acting like an ‘unreliable boyfriend’ on rates #TheElitePartyInJuly #Entertain9jar via @myentertain9jar

BANK of England Governor Mark Carney yesterday dampened expectations of a rise in interest rates – only to be told by an MP the Bank was behaving like an unreliable boyfriend.

 

Bank of England governor Mark Carney address the Commons Treasury Committee [PA]

He told the Commons Treasury Committee the recovery was still not strong enough to put an end to the rock-bottom loan rates introduced after the 2008 financial crash.

Mr Carney said fears of rising inflation were subsiding because the growth in earnings had not been as strong as anticipated.

City insiders expected a rise in the Bank base interest rate before the end of the year because of rapidly falling unemployment.

It strikes me the Bank is behaving a bit like an unreliable boyfriend – one day hot, one day cold

Labour MP Pat McFadden

Three weeks ago, Mr Carney said the markets were underestimating how long it would be before the central bank loan rate rose from the historic low of 0.5 per cent.

Qualifying his remarks yesterday, the governor said: “There is additional spare capacity in the labour market that can be absorbed before we would look to… raise interest rates.

Labour MP Pat McFadden said: “It strikes me the Bank is behaving a bit like an unreliable boyfriend – one day hot, one day cold – and the people on the other side of the message are left not really knowing where they stand.”