UK can escape ‘liquidity trap', Carney says

Mark Carney

Mark Carney, governor of the Bank of England, said today that the UK is on course to escape its ‘liquidity trap' without falling into a deflationary spiral – and said the Bank of England's forward guidance will allow the bank to "test the endogeneity of supply".

Addressing the Economic Club of New York this afternoon, Carney said forward guidance is "integral" to the central bank's response "to prevent the liquidity trap becoming a coffin", as it "reduces uncertainty by providing reassurance

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