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UK economy doing better than expected: Bank Of England's Carney
October 14, 2016 / 5:26 PM / a year ago

UK economy doing better than expected: Bank Of England's Carney

LONDON (Reuters) - Bank of England Governor Mark Carney said on Friday the British economy had performed a bit better than the central bank expected and the BoE would also have to take inflation considerations into account.

BBC television aired the comments from Carney after saying there was a possibility of the BoE not cutting interest rates in November.

“The economy is performing a little better than expected, albeit it is slow relative to the rate it had prior to the referendum,” Carney told the BBC. “We have to take into account inflation considerations so we’ll take all that into account.”

The BoE signaled in September that it might cut rates again on Nov. 3 if the outlook for the economy remained largely in line with its assessment in August.

But since then, data has shown the economy withstood the initial shock of the Brexit vote better than first thought and Britain’s sterling currency has fallen further, adding to inflation pressure.

“The movement of the currency will flow through to the prices on the high street relatively quickly,” Carney told the BBC in an interview.

Writing by William Schomberg; editing by Mark Heinrich

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