Carney comments on the UK budget announcement to raise the minimum wage
- BOE will watch the progress of these wage rises and their effect on inflation
- New living wage may have a modest effect on CPI
- The fall in household debt will bottom at some point
- Unsecured debt levels are not flashing red to us yet
- Principle driver for households is a pick up in wages
- Wage data in has been a touch firmer than expected
- New BOE rules in 2014 had a bigger impact on house prices than expected
Miles
- Rise in interest rates clearly is coming and isn't a bad thing
- The new mortgage rules will help mortgage holders more able to deal with a rise in rates
Carney
- Current account deficit is a risk highlighted by FPC
- UK is relying on the kindness of strangers to finance current account deficit
- Household borrowing isn't driving the deficit
- Tighter fiscal policy is needed
- Tighter macroeconomic policy is needed also
- Deficit highlights importance of maintaining the attractiveness of the UK for foreign investment
