GO
Loading...

Mark Carney won't be 'railroaded' on rates: BAE's Carr

The Bank of England will not be "railroaded" into lifting interest rates early, said Roger Carr, the chairman of BAE Systems and a member of the central bank's Court of Directors.

"The judgment as to when to apply the next interest rate is the key call," Carr told CNBC at the World Economic Forum in Davos, Switzerland on Wednesday. Economic and political policymakers, as well as corporate executives, attend the annual meeting.

"I think the approach he (Bank of England Chief Mark Carney) is going to take is to watch and wait and act correctly, rather get railroaded into a quick decision."

The Bank of England has held rates at record lows of 0.5 percent since March 2009.

Governor Mark Carney has said he will not consider raising rates until U.K. unemployment falls to 7 percent, which he originally forecast would not happen before the end of 2016.

However, data in the last few months has suggested the U.K. economic recovery is accelerating.

In particular, official statistics showed on Wednesday that unemployment fell to 7.1 percent in the three months to November — a whisker away from the central bank's targeted level.

(Read more: UK unemployment lowest since early 2009)

"The U.K. is having a very strong run," said Carr. "But these things have to be cared for and husbanded and if we lean back too much, the risk is, these things will slide."

The Bank of England's Court of Directors is responsible for managing its affairs outside of formulating monetary policy.

—By CNBC's Katy Barnato. Follow her on Twitter: @KatyBarnato

Symbol
Price
 
Change
%Change
BA.
---

Featured

  • Argentina, Buenos Aires

    The global elite have stumbled on an emerging market sell-off that served as a reminder of the risks the global economy still faces.

  • A logo sits on a sign at the World Economic Forum in Davos, Switzerland, on Thursday, Jan. 23, 2014.

    Sure there was talk of women's issues at Davos but this female CEO says one of the questions she got asked a lot was: Are you here as a spouse?

  • The World Economic Forum logo in Davos, Switzerland.

    Here’s a five-point reality check for why people need to stop bashing Davos as an irrelevant gathering of the elite. By the executive director of Wharton's Risk Management Center.

  • Marissa Mayer

    Negotiations over the U.S. debt ceiling are still one of the biggest risks facing the world, according to Yahoo CEO Marissa Mayer.

Videos

Latest Special Reports

  • An era of innovation dominated by secretive corporate labs is ending. Time for you to help crowdfund the future.

  • Tips on the best-performing portfolio strategies and global market trends that can help you become a smarter investor.

  • CNBC and Institutional Investor host the 4th Annual Delivering Alpha Conference.