Britain's economic recovery has further to run before it will be appropriate to change the Bank of England's ultra-loose monetary policy stance, governor Mark Carney said today.

“Even though employment is growing and unemployment has fallen ... the recovery has some way to run before it would be appropriate to consider moving away from the emergency setting of monetary policy,” said Mr Carney in a speech in Edinburgh.

It was a reiteration of recent Monetary Policy Committee members' views, as was a comment that when the time comes to raise interest rates, any such move will be gradual.

Mr Carney and other BoE officials last week stressed there was no need to raise interest rates soon, even though data showed the unemployment rate fell to within touching distance of 7.0 per cent threshold at which the Bank will review its policy.

Mr Carney comment were part of a speech in Scotland more generally focusing on currency unions ahead of a referendum on the country’s independence from the United Kingdom.

(Reuters)