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BoE's Carney sees "delicate equilibrium" as world economy slows

Credit: Reuters Studio
Published on February 12, 2019 - Duration: 01:39s

BoE's Carney sees "delicate equilibrium" as world economy slows

Global economic growth is likely to stabilise at a new, slower pace, although China, trade wars and rising protectionism threaten the "delicate equilibrium", Bank of England Governor Mark Carney said in a speech on Tuesday.

David Pollard reports.

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BoE's Carney sees "delicate equilibrium" as world economy slows

It's been a week of warnings from Mark Carney.

Last Thursday, the Bank of England governor said Britain was facing its weakest growth in a decade.

On Tuesday, his message was the world - and what he calls the 'delicate equilibrium' it finds itself in.

(SOUNDBITE) (English) BANK OF ENGLAND GOVERNOR, MARK CARNEY, SAYING: "Given the current broad-based slowdown and the rise in downside risks, some are beginning to wonder whether the global expansion that began in 2010 could be starting to end." Downside risks that include tighter financial conditions .... Plus the 'significant and growing' threats from rising debt in China ... And new barriers to global trade.

(SOUNDBITE) (English) BANK OF ENGLAND GOVERNOR, MARK CARNEY, SAYING: "It isn't easy to win a trade war." But nor, he hinted, are there winners yet from Brexit.

Official figures released on Monday confirmed growth in the UK as slower than it's been in seven years.

Britain an economy that will see damage if it leaves the EU next month without a deal to smooth the transition ... Even to the wage growth that's proved a highlight in otherwise gloomy recent data - and kept the prospect of a future rate hike alive for now.

(SOUNDBITE) (English) BANK OF ENGLAND GOVERNOR, MARK CARNEY, SAYING: "Certainly in the short term, there will be a hit to incomes .... You have got to recognise this could go quite badly.

We are 45 days before the possibility of it." This a week that also sees the release of key UK inflation and retail sales data ... The picture that could emerge is of British workers and consumer as - or even more - wary of the outlook than Carney himself.

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