SINTRA, Portugal (Reuters) – Bank of England Governor Mark Carney said changes to the way central banks steer their economies since the global financial crisis 10 years ago represented “tremendous advances” in monetary policy.
Carney cited innovations such as the use of forward guidance to give steers on what is likely to happen with borrowing costs, and programmes to pump liquidity in the banking system.
“In this as in so many other respects, Europe has a rich past,” he said in comments he was due to deliver at a conference organised by the European Central Bank on Tuesday.
“And in part because of that past, it now has the possibility of a bright future,” he said.
Carney said his comments should not be seen as having any bearing on the BoE’s latest monetary policy decision which is due to be announced on Thursday.
Twenty economists polled by Reuters all expected the British central bank’s nine monetary policymakers to vote unanimously in favour of keeping borrowing costs unchanged.
(Writing by William Schomberg, editing by David Milliken)