The Bank of England voted 9-0 to leave interest rates unchanged at the record low of 0.5%.
The main concern from The Bank of England however is that people's earnings are not increasing. especially as inflation rose to 1.9% last month. This was a concern as we have seen unemployment fall but wages are yet rise in line with the positive growth in the UK job market.
Carney did state that as the economy normalises,interest rates need to rise in order to achieve the inflation target but the MPC has no pre-set course and the timing of any interest rates rises will be determined by the economic data that is released.
He also suggested that The Bank of England would be risking a housing bubble and a return to recession if it left interest rates at an all-time low for too long. With rising housing prices, this could result in households taking on more mortgage debt to afford a new home, minimising their ability to spend money on goods and services that could cause the economy to contract.
The CBI retail sales survey also came out yesterday that beat forecasts with a reading of +21, up from +4 in June. That shows more shops are seeing higher sales this month.
The Spanish central bank has changed its economic forecasts for 2014 and 2015 in a more positive way.It now expects to see growth of 1.3% this year, up from 1.2% previously, and upped next year's forecast to 2.0%, up from 1.7%.
The report also suggests that the Spanish economy grew by 0.5% in the April-June quarter, which would be a small improvement after 0.4% growth in the first quarter.
Although Spain has suffered an intense recession and tough austerity measures, Spain's economy does appear to be slowly recovering. However one in four adults are still unemployed which shows there is a very long way to go.
9:30 - BST - GBP Retail sales figures expected to be higher at 0.1%
13:30 - BST - USD Initial Jobless Claims expected to be higher at 308,00
13:45 - BST - USD Markit Manufacturing PMI (July) expected to be higher at 57.5
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