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Carney says oil's decline positive for UK economy

Published 14/01/2015, 14:58
© Reuters. The Governor of the Bank of England Mark Carney listens during a Bank of England Financial Stability Report news conference, at the Bank of England, in the City of London

LONDON (Reuters) - Bank of England Governor Mark Carney said on Wednesday that the sharp fall in global oil prices was positive for British economic growth, repeating remarks made last month.

"My personal view is that the net impact of the decline in the oil price at this stage is net positive for growth in the United Kingdom," Carney told a panel of lawmakers.

While falling oil prices were a negative shock for the economy in Scotland, home to most of Britain's North Sea oil and gas industry, this would be "substantially mitigated" by the country's fiscal arrangements with the rest of the United Kingdom, Carney said.

© Reuters. The Governor of the Bank of England Mark Carney listens during a Bank of England Financial Stability Report news conference, at the Bank of England, in the City of London

Carney said in December that the fall in oil prices was unambiguously positive for Britain's economy and since then prices have fallen further.

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