Bank of England governor Mark Carney has indicated a shift in monetary policy mood today when speaking to the Treasury Select Committee, by refusing to confirm the next interest rate move will be upwards - something he firmly stood by earlier this year.
Speaking in front of MPs, Carney (pictured) was asked by journalists to repeat his stance on interest rate movements after saying at the Bank's Inflation Report press conference earlier this month that hiking rate is "absolutely" a move which the "whole MPC stands by", according to Sky News.
However, today when the question was posed again he said monetary policy is not on a "preset course" and if risks were to materialise or the "global situation were to intensify on the downside", it would have implications.
The governor also spoke of other stimulus options available to the Bank if the UK economy slowed further than expected: "We do all need to be prepared this economy could be hit by bigger shocks particularly from abroad", he reportedly said to MPs, according to the Financial Times.
However, he would not go as far as negative interest rates, a move adopted recently by central banks of Japan, Switzerland and Sweden in order to boost growth.
City AM reported Carney as saying: "It is not yet our judgement that it could go negative. If we were ever in a situation where we needed more stimulus we have other options."
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