Bank Governor pledges to learn from Japan
Mark Carney yesterday promised that he would heed the lessons of Japan's long stagnation and would not withdraw stimulus from the UK economy too quickly.
"In Japan they made two mistakes," the new Bank of England Governor told the BBC Today programme.
"Firstly they didn't fix the banks quickly enough. Secondly, as their recovery began they pulled back on stimulus too early. We don't want to make those mistakes here in the UK."
Mr Carney, who this week committed the Bank of England to keep policy rates on hold until unemployment drops to 7 per cent, said he had sympathy with savers who have seen their interest payments collapse over the past four years as the Bank has held rates at 0.5 per cent.
But he noted that Japan showed only a sustained economic recovery would allow policy rates to rise.
"More than a quarter century later, interest rates [in Japan] are still at rock-bottom levels" he said. "This is about ensuring that in the reasonable future we're delivering that strong economy that will deliver higher rates."
Mr Carney also repeated that, despite a host of encouraging economic data in recent months, it was premature to conclude that the economy was now growing at a self-sustaining speed.
"We're in the very early stages of a recovery from the weakest period on record," he said. "It really is only a return to roughly historic average rates of growth – we're not making catch-up in our forecasts."
Jo from Northern Ireland was less than impressed by Russell Brand's attempt to stage a publicity stunt
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
Shock poll shows voters believe Ukip is to the left of the Tories
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
New era of cheap oil 'will destroy green revolution'
Ukip founder Alan Sked and Nigel Farage 'begged Enoch Powell to stand as a candidate'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
iJobs Money & Business
£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...
£45000 - £55000 per annum + Benefits: Ashdown Group: An exciting opportunity h...
$125 - $175 per annum: Carlton Senior Appointments: Senior Wealth Manager In...
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...