LONDON, June 27 (Reuters) - Britain’s economy is still relatively vulnerable, Bank of England Governor Mark Carney said on Friday, citing high levels of household debt.
“This is an economy that’s just come off its worst recession in modern history, that still is relatively vulnerable,” Carney told BBC radio.
“Households ... still have a lot of debt relative to their income, so there can be some expansion in borrowing, some movement in the housing market, but there shouldn’t be too much.”
Carney added that the time will come to raise interest rates, but that they will rise in a limited and gradual fashion. (Reporting by Andy Bruce; Editing by Alison Williams)