Sounding more dovish on monetary policy than he has in recent months, the governor of the Bank of England told CNBC in a rare interview that global weakness, lower inflation and troubles in European economies would influence policy at the bank's meeting next month.
Mark Carney didn't signal any overt change in policy ahead of the meeting, but he was clear that the BOE would incorporate recent economic developments, which have included a downgrade to the global economy by the International Monetary Fund and recent negative growth numbers from Europe.
"There is weakness, more broadly in EMs (emerging markets) and certainly in Europe, and Europe is the largest trading partner of the U.K.,'' Carney said in the interview Saturday. "We have to account clearly for a more modest global recovery, particularly if that is the case in Europe. In addition, we really are concentrating on the labor markets which will be as important as external developments for the path of monetary policy."