Bank of England governor Mark Carney has been upbeat about the UK economy.
At a speech in Newcastle last week, the BoE chief said: “The incoming data has given me greater confidence that the softness of UK activity in the first quarter was largely due to the weather, not the economic climate.”
He went on to say the economy had developed in line with what the bank expected back in May, with “demand growing at rates slightly above those of supply and domestic cost pressures building.” While he wasn’t specific about when the central bank’s next hike in interest rates would come, he did say more of the same from the economy would warrant “an ongoing tightening of monetary policy over the next few years… to return inflation sustainably to its target.”
