HIGHLIGHTS-Bank of England Governor Carney speaks
NOTTINGHAM, England Aug 28 (Reuters) - Following are highlights of Bank of England Governor Mark Carney's comments after a speech on Wednesday.
ON IMPORTANCE OF BANK RATE VS MARKET RATES
"Hanging this on markets is to miss the point. What my colleagues and what I am hearing across the country is that there is appreciation for that greater degree of certainty that is being provided by the bank. And remember... the rate that matters for three quarters of households and more than three quarters of businesses are rates of less than one year, in most cases a floating rate, and those rates are related directly to Bank Rate and Bank Rate is decided by the MPC."
ON BARRIERS TO INVESTMENT
"What there has been is a lot of uncertainty which has held back investment... There have been issues with access to finance, which has prevented re-allocation of capital...preventing good ideas being put to work - we're working on that."
ON FORWARD GUIDANCE
"The guidance is not around the date. The guidance is around an economic outcome, specifically unemployment, and different institutions, different individuals can have can have different views about when that economic outcome is going to be achieved.
"I think the thing that has to be stressed is that just the achievement of that economic outcome - it does not then follow that interest rates move."
"I'd stress that the assessment that the MPC will take when the threshold is reached will be what's right for the economy at the time. This is not a precommitment on action."
ON WHEN POTENTIAL STIMULUS MAY BE IMPLEMENTED
"All good questions, all questions that can be answered in the fullness of time by the MPC. Let's not make a monetary policy recommendation today."
ON SECURITISING SMALL BUSINESS LOANS
"I think one has to be a little careful about SME loans for securitisation just because the nature of them might, I referenced it, they tend to be floating rate, they tend to be short-term ... and that doesn't work well moving that into a securitisation package.
"On the other hand, a well-functioning securitisation market does mean more efficient balance sheets for the financial sector as a whole, which frees up capacity, which then can have a knock-on effect."
"The core to recognise is that sustainable rebalancing of this economy, externally and internally, is ultimately going to come through productivity growth, and that is going to come from investment."
ON REACTION TO BOE POLICY
"What I am hearing across the country is that there is appreciation of that greater degree of certainty that is being provided by the bank."