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Carney praises ECB but accuses Eurozone of failing to act

Bank of England Governor Mark Carney praised the European Central Bank for the "boldness" of its plan announced last week to buy hundreds of billions of euros of government bonds to fight the "potentially dangerous" combination of weak growth and falling prices.

Mark Carney speaking at Davos last week. Credit: Reuters

But he criticised the eurozone for failing to act on other reforms, including making the single currency area more like the United States, where states cushion one another against economic shocks via federal government transfers.

"It is difficult to avoid the conclusion that, if the eurozone were a country, fiscal policy would be substantially more supportive," he said in a speech in Dublin.

Mark Carney attacks eurozone over austerity

The Governor of the Bank of England launched a broadside against eurozone austerity policies, warning that it was caught in 'a debt trap'.

Mark Carney's comments come as Greece's new Prime Minister confirmed he will be fighting the tight austerity policies placed on the country by the EU.

The Governor of the Bank of England Mark Carney speaking last year. Credit: Anthony Devlin/PA Wire

Since the financial crisis all major advanced economies have been in a debt trap where low growth deepens the burden of debt, prompting the private sector to cut spending further. Persistent economic weakness damages the extent to which economies can recover. Skills and capital atrophy. Workers become discouraged and leave the labour force. Prospects decline and the noose tightens.

As difficult as it has been, some countries, including the US and the UK, are now escaping this trap. Others in the euro area are sinking deeper.

– Mark Carney

BoE: Economic growth will be slower than expected

Mark Carney, the Governor of the Bank of England (BoE) has said that inflation is more than likely to fall below 1% over the next six months. Its growth expectations for next year have been cut from 3% to 2.9%.

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Carney: Interest rates rise warning 'was a personal view'

Bank of England Governor Mark Carney said his warning that record-low interest rates will rise sooner than markets expect was "a personal view."

ITV News Economics Editor Richard Edgar reports:

Carney: No acceleration in 'actual earnings' growth

Bank of England Governor Mark Carney told MPs there has not been an acceleration in "actual earnings" growth.

He told the Treasury Select Committee, "Since 2008 there's only been six individual months in total where average weekly earnings has been above inflation".

ITV News Economics Editor Richard Edgar writes:

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