Britain's Recovery "Strongest in the World"

Britain’s recovery 'strongest in world’

Bank of England Governor Mark Carney says that after years of weak growth and economic uncertainty, the economic recovery has “finally taken hold”





Britain is enjoying “one of strongest recoveries in the advanced world”, the Governor of the Bank of England has said

Mark Carney conducts the quarterly inflation report press conference in the Bank of England Photo: CHARLIE BIBBY



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James Kirkup
By James Kirkup, Political Editor

9:05PM GMT 13 Nov 2013



Comments62 Comments





Britain is enjoying “one of strongest recoveries in the advanced world”, the Governor of the Bank of England has said.


Mark Carney said that after years of weak growth and economic uncertainty, the economic recovery has “finally taken hold”.


“For the first time in a long time you don’t have to be an optimist to see the glass is half full. The recovery has finally taken hold,” he said. “We have one of strongest recoveries in the advanced world.”


Mr Carney spoke as the Bank raised its forecasts for economic growth and suggested that it could start raising interest rates more quickly than expected, perhaps even before the general election due in 2015.


Such a step would be welcomed by millions of elderly savers who would see better returns on their investments.


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The Governor tonight insisted that he was “absolutely” prepared to raise borrowing costs before that election, regardless of the political consequences.

“In these jobs, you just have to do the right thing,” he told Channel Four News.

Official figures also showed that unemployment has declined again, falling to 7.6 per cent, the lowest level since 2009.

Mr Carney has suggested that when unemployment reaches 7 per cent, he will consider putting up interest rates. Bank rate has been at a record low of 0.5 per cent since 2009.

The Bank’s new, more optimistic forecasts now suggest that the unemployment target could be hit by the end of next year.

Mr Carney said that hitting the target would not automatically mean a rate rise, but City economists expect the Bank to start increasing rates in early 2015.

Higher rates would be a relief to millions of savers whose investment income has been slashed in recent years.

But they would also put pressure on borrowers, including mortgageholders, just as ministers try to boost home ownership before the next election.

George Osborne, the Chancellor said the Bank’s forecasts showed that the Coalition’s economic plans are working, and balancing the public finances will help keep interest rates down.

“Ultimately if you don’t have a control on your debt and deficit, interest rates would also be higher than they would otherwise be. So our plan is helping the Bank of England do its job.”

Charlie Bean, the deputy governor, suggested that the economic recovery could increase the number of skilled immigrants taken on by British employers.

Companies are starting to report skill shortages in areas like engineering, and immigration is “a potentially important mechanism for alleviating those skills constraints”.

This is where Britain fails, lack of Apprentiship skills . Two years ago this was regarded as a serious problem for growth so expect more immigration because we can't provide the necessary labour. A few years ago Tony Blair was offering £70 a week for manufacturers to offer apprenticeships , Employers didn't want to know .