Carney unlikely to end ultra-accommodative policy, despite signs that it's not helping the real economy

A new report from Neil Prothero, UK analyst at author of the Economist Intelligent Unit report “The end isn’t nigh: central bank challenges as the era of cheap money enters a new phase” suggests that easy money is not on the way out. In fact, ultra accommodative policy could hang around for quite some time.

Prothero's analysis finds that the impact of the ultra-loose, unorthodox policies have had limited impact on the UK's real economy.

(Source: EIU)

Released on the day of Mark Carney's arrival as governor at the Bank of England, Prothero says that the Canadian is unlikely to prompt refinement of the current policies but will lack the tools to allow the economy to reach "escape velocity".

It is all but certain that Mr Carney will start his tenure with a concerted attempt to bolster economic activity, but there is little he can do about the UK's weak fundamentals and the continuing effects of fiscal austerity, which will weigh on growth for a long time.

But we may have to wait some time to see what Carney has to say for quite some time: