` BOE Governor ` Mark Carney ‘ signals he is not concerned that Britain’s Economy was close to Overheating ‘

#AceFinanceNews (Reuters) – Bank of England Governor Mark Carney signalled he was not concerned that Britain’s economy was close to overheating, despite a strong recovery since last year, putting himself in the dovish camp among policy-makers.

Speaking to lawmakers on Tuesday, Carney said the amount of spare capacity in the economy was probably slightly more than 1.5 percent of gross domestic product, suggesting the BoE can hold off on raising interest rates for longer.

Carney also said Britain’s natural rate of unemployment could be less than the Bank has estimated, meaning the labour market can strengthen further without pushing up inflation.

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