Tag: Mark Carney

Bank of England changes tack

Posted on February 12, 2014 by - News

Bank of EnglandThe governor of the Bank of England said that the UK recovery has “gained momentum”.

In his quarterly overview of the British economy, Mark Carney said output here is growing at its fastest rate since 2007, while jobs are growing more than since records began.

He believes that the recovery shows a revival in confidence and an ease on credit.  That, he said, meant households were spending more and saving less and there’s been a boost to the housing market.

But business investment is still subdued, although indications are that may change this year.

The Bank of England has revised its position on interest rates.  Last year, it said it wouldn’t revise interest rates until unemployment fell to seven percent.

But growth in productivity is “disappointing,” Carney said, while there is more slack in the labour market. Part time work continues to increase while half of the recent increase in jobs is because people are self employed.

But Carney warned the recovery “is neither balanced nor sustainable….If and when the time comes that the economy can sustain highter interest rates, bank rate is expected to rise only gradually”.

The Bank of England won’t raise interest rates until spare capacity has been absorbed further.  He said the rate will stay at low levels for quite some time.

Bank of England says economy is on the up

Posted on November 13, 2013 by - News

churchillLower unemployment figures and a drop in inflation have led the Governor of the Bank of England to saw the UK economy will growth this year and next year.

Interest rates won’t be increased until unemployment falls to seven percent or below, Mark Carney said.

Growth in the UK is now likely to be 1.6 percent, slightly up from the 1.4 percent forecast. And Carney said annual growth could reach 2.8 percent, rather than the 2.5 percent the Bank predicted earlier this year.

In the quarterly inflation report, the Bank said that “recovery has finally taken hold. The economy is growing robustly.. thawing credit conditions start to unlock pent-up demand.”

Carney said that although house prices are showing signs of inflation, there did not yet seem to be evidence for a British property bubble.

Bank of England urged to support start-ups, SMEs

Posted on August 29, 2013 by - News

poundsA tech entrepreneur has called on the Bank of England to ramp up support for SMEs and start-ups, in what can only be a case of stating the obvious. However, every now and then the powers that be need a kick in posterior, as they tend to lose touch with reality quite often.

Powa Technologies CEO Dan Wagner said he would like to hear from the new Governor of the Bank of England and that he would like to see more support for entrepreneurial talent in the UK from Mark Carney.

“We have some fantastic, inspirational entrepreneurs who start great businesses, but unfortunately many of them have to go abroad to get the funding they need to grow and succeed and that is a shame,” he said. “Britain has great innovation across all areas and it needs to be nurtured and supported because it will be the lifeblood for the return of economic strength.”

Of course, Britain is no East Germany and it’s not experiencing a brain drain, but there is always room for improvement. Wagner believes the biggest problem for small businesses and start-ups is the lack of tax incentives for investment. In other words, even if a start-up comes up with a new idea and starts growing, it might choose to expand elsewhere, which means Britain could lose winners – and they are few and far between in the start-up world.

“I would like to see capital gains tax completely removed from the funding of start-up businesses. Any funds that are invested to create opportunities and jobs should see a full capital and profit return because of the great risks involved. This would be a political saviour. Small businesses represent 50% of the economy and its new small businesses that will drive future economic growth,” said Wagner.

Wagner told business leaders at an event in Nottingham that Britain knows a thing or two about coming up with brilliant ideas, such as the World Wide Web, and it needs to tap the potential by providing the right environment for start-ups and tech entrepreneurs. The long term benefits of losing a few quid on lower taxes for small outfits far outweigh the short-term tax revenue generated by such companies.