BOE’s Carney Sees U.K. Growth Influenced by Greater Risks

Bank of England Governor Mark Carney spoke of “heightened” external risks menacing the U.K. as weakening global economies and political tensions weigh on the outlook.

“In recent months, global economic conditions have deteriorated in two of the major economies — Europe and Japan,” he told lawmakers in London today. “The geopolitical situation remains difficult. The combination of that suggests a heightened degree of external risks to the U.K.”

Carney made his comments as the Paris-based Organization for Economic Cooperation and Development declared that the global economy “continues to run in low gear.” BOE policy makers cut their economic forecasts earlier this month because of feeble global expansion and the “specter” of stagnation in Europe, a sentiment echoed in testimony today.

Bloomberg