Carney dismisses suggestions of stagnation

Carney dismisses suggestions of stagnationBank of England Governor, Mark Carney has dismissed suggestions that the advanced economies are facing stagnation.

Mr Carney dismissed a theory put forward by former US Treasury Secretary Larry Summers that advanced countries are facing an innovation barrier that would severely restrict their ability to grow in the coming future. Mr Carney pointed out that flexible labour markets and openness to global trade and investment flows would allow the UK to record strong growth in the coming months.

He said, "Such worries have proven misplaced in the past and scepticism is warranted now. It seems unlikely that communicating in 140 characters - useful discipline though that is - represents the apex of human progress".

He said that there is no reason to believe that the growth rate would fall in the UK in the coming future. He also said that the UK economy has enough capacity to grow without generating excessive inflation in the coming future. He said that the recovery in the UK will still require sustained growth including more robust and balanced global economy. The Bank's Financial Policy Committee is working to ensure financial stability in the country even while maintaining low interest rates.