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

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.”