James Calder, research director at City Asset Management, said Carney had found himself in a tricky situation going forward.
He said: “I think the real question is where should interest rates be at this point? In an ideal world you’d want them higher but moving them up at this point would probably send some bad signals to the market.
“When it comes to the next downturn they have to have some bullets in the gun to raise rates so I think they are stuck between a rock and a hard place.
“They had the opportunity a few years ago but the dropped interest rates after Brexit and I think they shot themselves in the a foot a bit with that. It’s a difficult job for Carney.”
Julian Chillingworth, CIO at Rathbones Investment Management, said he agreed with the tone of Carney’s speech and is not surprised by its contents.
“I do not think now is the right time, we are entering Brexit negotiations that are unlikely to go smoothly.
“If anything domestic growth will be slower and consequently the Bank of England is staying its hand.”
