Head of Bank of England issues plea to stay the course on financial system reforms

Mark Carney stressed that many of the reforms - although small - would pay-off 'very far' into the future

Mark Carney inside the Bank of England in Threadneedle Street, London (Getty)

The governor of the Bank of England has warned that politicians and bankers must resist "reform fatigue" over the process making the financial system safer.

But he also stressed there were “huge benefits” to the reforms and although the financial system is less likely to amplify initial shocks than in 2008, Carney warned there was no still no room for complacency about its resilience.

The Governor is likely to oversee the Bank’s first ever forecast of an inflation rate below zero later this week due to plunging oil and food prices.

But he also struck a more upbeat tone on the UK economy amid early signs of wage growth.

Financial markets currently believe the Bank will not move on interest rates until mid-2016.

However, the Governor said: “In the UK we’ve had a lot of job creation, not a lot of productivity, but a lot of job creation and relatively muted wage performance.

“We’re just starting to see the turn in wages that we need for a sustainable recovery.”