'New normal' for UK rates is 2. 5 percent, says bank

(AGI) London, June 27 - UK interest rates will not return totheir average of 5 percent before the financial crisis, saidBank of England governor Mark Carney on Friday. "What I amtelling you is that the old normal is not the new normal," hesaid. "Why is that the case? Because things have changed.Households have a lot of debt, the government is stillconsolidating its financial position, Europe is weak, the poundis strong and the financial system has been fundamentallychanged." He said the "new normal" is about 2.5 percent, whichshould be reached by the

(AGI) London, June 27 - UK interest rates will not return totheir average of 5 percent before the financial crisis, saidBank of England governor Mark Carney on Friday. "What I amtelling you is that the old normal is not the new normal," hesaid. "Why is that the case? Because things have changed.Households have a lot of debt, the government is stillconsolidating its financial position, Europe is weak, the poundis strong and the financial system has been fundamentallychanged." He said the "new normal" is about 2.5 percent, whichshould be reached by the first quarter of 2017. . .