BoE UK recovery to be measured not rapid

New governor of the Bank of England (BoE) Mark Carney has stated that he expects the growth of the UK economy will be "measured" rather than "rapid" in the coming months.

Mr Carney, who replaced Sir Mervyn King in the position earlier in the summer, suggested it could take some time until joblessness falls to seven per cent and interest rates are increased.

He explained that although a "renewed recovery is taking hold" in the UK economy, it is thought that there is only a one-in-three chance of the unemployment rate hitting the seven per cent target by mid-2015, BBC News reports.

"Furthermore, thinking unemployment will come down faster than the Bank expects isn't enough to believe interest rates will rise soon," Mr Carney told business leaders in Nottingham in one of his first public appearances since joining the BoE from the Bank of Canada.

The BoE recently confirmed it will not consider raising interest rates from their current record low of 0.5 per cent until unemployment drops to seven per cent.

Mr Carney noted this is a "staging post" to assess the economy and the seven per cent mark will not be a "trigger" for rates to be increased. More than 2.5 million people in the UK are currently out of work.

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