Bank of England Is in 'Tremendously Difficult Position': Wells Fargo
Former Bank of Canada and Bank of England Governor Mark Carney voiced support for the surprise decision to raise the benchmark lending rate a half point Thursday, saying it’s right that officials get a grip on rising prices.
“Inflation is too high,” Carney said Thursday in an interview on Bloomberg TV at a climate change conference in Paris. “They needed to tighten rates and get them to the appropriate level. So it’s good to see firm action from the bank.”
Carney’s comments lend support to Governor Andrew Bailey, who is under fire for allowing inflation to surge to a four-decade high last year. The BOE lifted its key rate to 5% on Thursday, the highest since 2008 and the biggest move since February.
“It’s an environment of overall uncertainty,” Carney said. “It’s tough but the UK is an incredibly resilient economy with very strong institutions including the Bank of England. They will do the right thing.”