BoE's Carney Says More Slack In UK Labor Market Than Thought

 
on June 24 2014 6:46 AM
UK Employment
Commuters walk across London Bridge to the City of London on Aug. 7, 2013. Reuters/Luke MacGregor

(Reuters) - Bank of England Governor Mark Carney said on Tuesday there appeared to be more slack in Britain's labor market than previously thought, though the economy had picked up more strongly than expected.

Speaking to British lawmakers, Carney said that data on British wages had come in softer than expected.

"Taken in isolation the continuation of development on the wage front suggest to me ... that there has been more spare capacity in the labor market than we previously had thought," Carney told British lawmakers.

But he said this should be balanced against stronger than expected growth and momentum.

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