DAVOS, Switzerland (Reuters) - Exceptional policy stimulus remains very relevant for the British economy and even when the central bank raises interest rates it will do so gradually, Bank of England Governor Mark Carney said on Saturday.
“I am not signaling an exit of UK monetary policy here just to be clear,” he told the World Economic Forum in Davos.
“I have already given some additional guidance on monetary policy and said there is no immediate need to raise interest rates. Even when that point comes which could be, well I won’t put a timeline, the increase would be gradual.”
Highlighting the challenges facing the British economy, he added: “In that environment exceptional stimulus remains very relevant.”
Reporting by Paul Taylor and Paul Carrel; Editing by Janet Lawrence