THE GLOBAL economy is still very weak and markets should not get over-excited just because the UK is performing strong, Bank of England governor Mark Carney warned yesterday.
British growth has taken off, and the Bank believes it will soon be strong enough to withstand higher interest rates.
But the economy is still being slowed by the weak Eurozone.
“It is not yet the time to underplay the exceptional circumstances we remain in,” he told the Treasury Select Committee of MPs.
“Interest rates are still at the zero lower bound, there is still substantial spare capacity, all other major central banks are engaged in quantitative easing.
“The global economy is growing at below its trend rate, and there is still significant balance sheet repair required in the public and private sectors in this country.”
His comments were unusually downbeat, given markets are currently abuzz with hopes for the UK’s rebound to continue strongly.