Carney sees no need for more stimulus; Sterling jumps
Mark Carney, the new governor of the Bank of England has said the U.K. economy is recovering and he doesn't see the need for further bond-buying by the central bank.
His comments helped boost Sterling, which rose 0.24 percent against the dollar to $1.6077 on Friday.
Since 2008, the U.K.'s central bank has spent £375 billion ($603 billion) buying up bonds in the financial sector – a process called "quantitative easing " -- in the hope that lenders will use the funds to invest.
(Read More: UK economy needs full-blown rebalancing)
"Across the U.K., the recovery is broadening so it's more than just recovery in a particular sector of the economy and we are seeing an associated pick-up of growth in Europe and the United States is continuing to perform well," Carney told the Yorkshire Post, in an article published on Friday.
"My personal view is, given the recovery has strengthened and broadened, I don't see a case for quantitative easing and I have not supported it," he added.
Just two weeks ago, Carney had warned the central bank was ready to act if the U.K.'s fledgling recovery failed to materialize.
"Our job is to make sure that (the recovery is) not another false dawn that we saw a few years earlier, and to make sure that as soon as possible, this economy reaches a form of sustained velocity so that it can sustain higher interest rates and continue to grow," he told the U.K. parliament's Treasury Select Committee.
U.K. economic data have indicated an improving economy in recent months, although the picture has been mixed. On Thursday, gross domestic product (GDP) growth over the past year was revised down to 1.3 percent from 1.5 percent. On the other hand, construction activity and purchasing managers' index (PMI) numbers have remained strong.
- By CNBC's Deep Bagchee. Follow him on twitter: @DeepBagchee