Carney warns that wages unlikely to rise in real terms until mid-2014

Frances colour

Speaking at the Bank of England’s quarterly inflation report news conference, on 13 November, the Governor said that wages were unlikely to rise in real terms until mid-2014.

Despite a strengthening economy, Mark Carney told Channel 4 News that “not everybody across the country” was benefitting from the recent upturn in growth.

“Real wages are not picking up, they haven’t been for a number of years,” he said.

“Middle of 2014 through to the end of 2016 … is (when) you start to see real wage gains,” Carney added.

Wages in Britain are rising at less than half the rate of inflation, which could make the cost of living a key issue in the coming electoral battleground.

When asked if he would consider raising interest rates before the next general election, due in May 2015, the Governor said: “Well, absolutely … you have to do the right thing with an eye on the medium term.  That’s the horizon for central bank policy.”