Carney clarifies bank guidance

The Bank of England Governor attempted to shore up his "forward guidance" policy amid signs it is not having the desired effect. During his first regional speech in Nottingham, Mark Carney also compared the UK's productivity to singer Jake Bugg.

Mark Carney compares UK productivity to Jake Bugg

The Bank of England Governor Mark Carney has compared the UK's productivity to singer Jake Bugg during his first regional speech in Nottingham.

Carney said: "The UK is no more productive than it was back in 2005 - before Jake Bugg got his first guitar and since then...he's had a number one record and a string of very successful gigs. He's become a lot more productive".

The musician, who is from Nottingham, released his self-titled debut album last year which went to number one in the charts and he was nominated for a 2013 Brit Award.

Carney to reiterate Bank's commitment to low interest

Bank of England governor Mark Carney is expected to reiterate the Bank of England's commitment to keep interest rates low when he addresses regional business leaders in Nottingham later today.

Bank of England governor Mark Carney will address regional business leaders in Nottingham today.
Bank of England governor Mark Carney will address regional business leaders in Nottingham today. Credit: Jason Alden/PA Wire

Mr Carney is set to try and persuade them that conditions are right to start spending money saved during the downturn and end an investment drought acting as a restraint on growth.

The governor is also expected to defend the Bank's tough rules on leverage ratios for lenders amid robust criticism from Business Secretary Vince Cable last month.

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Carney to clarify the Bank of England's guidance

Bank of England governor Mark Carney will attempt to shore up his flagship "forward guidance" policy amid signs it is not having the desired effect on the City.

Bank of England governor Mark Carney will make a speech in Nottingham later today.
Bank of England governor Mark Carney will make a speech in Nottingham later today. Credit: Jason Alden/PA Wire

Mr Carney will make his first regional speech later today at a business lunch in Nottingham.

The address to regional business leaders has been billed as an attempt to go over the heads of City analysts and talk directly to the decision makers in the real economy about what "forward guidance" means.