LONDON Feb 2 Bank of England Governor Mark
Carney gave a news conference on Thursday after the central bank
boosted its forecast for British growth in 2017 and some
rate-setters said they were more nervous about rising inflation.
Below is a selection of his comments.
“Growth has remained resilient since the referendum, with
the UK posting the fastest rate in the G7 last year. The MPC
expects growth to be stronger over the forecast period than in
November, with the economy now projected to expand by 2.0
percent in 2017 and around 1.75 percent thereafter.
“This stronger projection doesn’t mean the referendum is
without consequence. Uncertainty over future arrangements is
weighing on business investment, which has been flat since the
end of 2015.
“Inflation is expected to increase further, peaking around
2.8 percent at the start of 2018, before falling gradually back
to 2.4 percent in three years’ time. This overshoot is entirely
because of sterling’s fall, which itself is the product of the
market’s view of the consequences of Brexit.
“At its February meeting, the MPC unanimously judged that it
remained appropriate to seek to return inflation to the target
over a somewhat longer period than usual …. As the Committee
has previously noted, however, there are limits to the extent
that above-target inflation can be tolerated.”
(Reporting by UK bureau Editing by Jeremy Gaunt)