LONDON (MNI) – Bank of England Deputy Governor for Financial
Stability Paul Tucker has told a business audience here that the UK
economy is recovering “as well as we could have expected” but warned
that headwinds remain strong and that the recovery will be “bumpy and
uneven”.
“Given some of the recent softening in some of the economic
data, things are better than they were. So far, so good. The economy
is starting to recover at least as well as we could have expected,” he
told the Confederation of British Industry Annual Conference.
Tucker then somewhat contradicted himself, stating that he thought
that he now thought monetary tightening would come later than he had
previously expected.
“Earlier in the year, I had expected, half expected perhaps, by
this time of the year that the Bank of England would have started to
withdraw some of the monetary stimulus that we had provided to the
economy. That seems to me, in terms of my own personal vote, to be
rather less likely now. The headwinds remain reasonably strong and the
recovery will be bumpy and uneven.”
More needed to be done to assure the recovery, Tucker said:
“More needs to be done…There has to be a rebalancing of the
domestic economy, that appears to be happening. The recovery in
manufacturing…all the signs are that this is firmer than the recovery
in services, this is good news for the future.”
–London bureau: +4420 862 7499; email: wwilkes@marketnews.com
[TOPICS: M$B$$$,M$$BE$,M$BDS$,MT$$$$]
