Carney speech: Low interest rate environment adds to government's fiscal capacity

The low interest rate environment adds to the government's fiscal policy, Bank of England (BoE) Governor Mark Carney said on Tuesday in his speech before the Economic Affairs Committee. "Low interest rate environment is putting some pressure on UK bank margins but should be kept in perspective," Carney added.

"Public infrastructure and corporate investment will be necessary to get the UK out of low growth, low interest rate environment," Carney further explained.

The British pound weakened slightly against its major rivals in the last minutes and the GBP/USD pair was last seen trading at 1.2950, where it was still up 0.28% on a daily basis.

About Mark Carney 

Mark Carney is Governor of the Bank of England and Chairman of the Monetary Policy Committee, Financial Policy Committee and the Board of the Prudential Regulation Authority. His appointment as Governor was approved by Her Majesty the Queen on 26 November 2012. The Governor joined the Bank on 1 July 2013.