Belfast Telegraph

Bank of England 'is not to blame for inequality'

By Kalyeena Makortoff

Bank of England governor Mark Carney has said the UK is facing "sharper disparities" in inequality despite wider global growth, but that monetary policy is not to blame.

In his first major speech since the week following the Brexit vote, Mr Carney said many citizens in advanced economies like the UK are facing heightened uncertainty despite "aggregate" global progress, which is putting public support for open markets "under threat".

"The picture in the UK is complex but in general suggests relatively stable but high levels of overall inequality with sharper disparities emerging in recent times for the top 1%.

"When combined with low growth of incomes and entrenched in intergenerational inequality, it is no wonder that many question their prospects," he said in a speech delivered at the Liverpool John Moores University yesterday.

He noted that millennials are some of the hardest hit by income and wealth inequalities.

Millennials are earning on average £8,000 less during their 20s than their predecessors, while those over 60 have seen their incomes rise at five times the rate as the rest of the population as a whole since 2007.

But that has followed in the footsteps of a financial crisis which has stripped productivity levels across the country.

Nine years after the crisis, UK productivity levels are 16% lower on aggregate.

The governor also used the speech to criticise aspects of globalisation and free trade.

Mr Carney said: "Globalisation is associated with low wages, insecure employment, stateless corporations and striking inequalities."

Belfast Telegraph

Popular