Carney calls for balanced policy response to nurture recovery

Low rates of nominal economic growth create challenges that cannot be overcome by central banks alone, Bank of England governor Mark Carney said.

Speaking in his role as the chair of the Financial Stability Board, Carney said on Thursday: "there is a clear recognition that the challenges of a low nominal growth environment will not be solved by monetary policy alone and that developments over the course of the past several years globally are serving to reinforce those realities."

"In the end, if you don't have profitable financial institutions then gradually that resilience is undercut. The core lessons of this doesn't go to monetary policy or financial stability policy. But it does go to structural policies needed to enhance productivity alongside efforts to reflate our economies."

According to Reuters, Carney avoided a question from a journalist related to the Bank of Japan´s recent decision to adopt negative interest rates.