Carney: It would be 'foolish' to cut rates to tackle low inflation

Mark Carney has told MPs it would be ‘extremely foolish' for the Bank of England to cut interest rates further in order to combat falling inflation.

Addressing the House of Lords Economic Affairs Committee, Carney (pictured), reiterated his view that the falling oil price is a temporary factor affecting consumer prices. He suggested, because the oil price fall is a short-term shock to the economy, any measures taken by the Bank are likely to have a negative impact, the BBC reports. "The impact of that extra stimulus ...