LONDON: Bank of England Governor Mark Carney and other top officials from the central bank are speaking in Britain's parliament.
Below are some of their comments: Carney on UK economy growth:
"As a whole the economy has been growing at a faster rate than what its trend is, an on balance we expect that to continue over the course of our forecast."
Carney on sterling: "Sterling's persistent strength is an important factor in terms of the evolution of prices and pressures on inflation including over the medium term horizon.
MPC's McCafferty on oil price falls: "I think the further fall that we've seen in oil prices across the last few weeks relative to both May and August clearly prolongs the period of very low inflation by a few months. But beyond that this is a price level effect and over the course of the horizon should fall out of the equation."
Carney on Chinese data: "Certainly the Chinese statistics are published with remarkable speed and are not subject to revision, and there is a remarkable degree of stability to the underlying statistics.
"There is reason to think that there is more of an underlying volatility in growth in China than in officially measures statistics, recognising that we all have challenges in statistics, the United Kingdom included.
"The hard indicators that have shed greater light on the underlying momentum in the economy and broad brush those indicators have suggested, as have the official indicators, a consistent slowing in the Chinese economy."
"We think these downside risks to growth have increased. Carney on Chinese actions, discussions: "Certainly the steps that the People's bank have taken in recent months have provided additional stimulus to the economy but it works less effectively when there is a debt overhang and when banks are concerned about rising PMLS." "In discussions that I've had over the last two weeks with the senior most Chinese authorities ... I was left in no doubt in terms of the intent to continue with the pace of financial reform if not accelerate it, given these circumstances. And that is welcome." MPC's Weale on rates: "The earlier fall in oil prices last year gave us breathing space, that was the reason I stopped voting for an increase.
I think this further fall in oil and raw material prices has probably given us another breathing space." MPC's McCafferty on China: "I think there is a very interesting question and we have looked at it in some detail about the extent to which the movement in the Chinese stock market for example, will have a knock on effect in the UK economy.
"I think the answer to that is limited, and to the extent that the Chinese economy slows down more broadly that will have an effect and that, in terms of the estimates that we have from the direct trade effects, is also relatively limited. "I think that we can say the downside risks from emerging markets and in particular China have increased but the impacts on (the) UK, I still think is limited and contained." Weale on productivity:
"There's a question which can't be answered with any certainty: how far will second quarter strength we've seen in productivity last? Is it too good to last, is it too good to be true or have the unidentified factors which had been holding back productivity melted away?" Weale on inflation: "Not only my experience of the period of above target inflation but also more general statistical analysis suggests that apparently independent inflation shocks tend to come like buses, more than one at a time.
"That's not something I would necessarily give a great deal of weight to but it is something that makes me a bit more cautious."
Carney on Chinese links to UK economy: "What if the Chinese growth is 3 percent lower at the end of the forecast period what's the impact on the UK? 3 percent off Chinese growth is about 0.3 off global growth and 0.1 off UK growth.
We do not view the Chinese move as the start of some broader progress of explicit exchange rate targeting.
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