Newsnight’s Economics Editor BenChu_ clears up the confusion over what is happening to Britain's economy on: 📈 Borrowing costs 💰 Pension funds 🏦 Interest rates ⚖️ UK national debt/GDP
Mr Carney also said that the government's mini-budget showed it was "working at some cross-purposes with the Bank in terms of short-term support for the economy".
Since the mini-budget, some economists believe interest rates could rise faster and higher, to as much as 6% by next May. The Bank of England has been forced to inject billions of pounds into bond markets. That is after a plunge in their value threatened the viability of the pensions funds that manage workers' retirement pots.
But while Mr Carney conceded that the global economy is "going through some difficulties", he said that over the last week "developments have centred around the UK" and that recent financial turmoil was a response to the government's mini-budget. His successor as governor, Andrew Bailey, declined to comment on Thursday on whether the Bank would make further interventions.
He added: "This is a robust system, this is a resilient system, it has had a big knock but it will move forward."
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
'Economic chaos': Former Bank of England policy maker slams Chancellor's 'utterly incompetent' mini-budgetProfessor of Economics Danny Blanchflower, who formerly sat on the Bank of England's monetary policy committee, says Kwasi Kwarteng's management of the mini-budget has been 'utterly incompetent'.
Read more »
Bank of England: How the central bank is supporting the economyThe Bank intervened stepped in to calm financial markets following the mini-budget.
Read more »
Government is undercutting UK institutions, says former Bank governorFormer Bank of England governor Mark Carney accuses Downing Street of working at cross-purposes with the Bank.
Read more »
Bank of England launches bond-buying programme to prevent 'material risk' to UK financial stabilityWhat is a bond-buying scheme? Sky's pkelso explains the Bank of England's temporary bond-buying programme - launched to prevent what it calls 'material risk' to UK financial stability. Read more:
Read more »