Interest rates: Mark Carney is right to remain cautious

A rate rise in the second half of 2016 is becoming a more remote possibility by the month

Mark Carney is halfway through his five-year term as governor of the Bank of England. Judging by his latest remarks on the state of the economy, he could go back to Canada in the summer of 2018 and still not have raised interest rates.

The governor's speech was notable for its dovish tone. Six months ago, in a speech in Lincoln, he said the decision on whether to increase the cost of borrowing would come into sharper relief around the turn of the year. That was seen as an indication that a tightening of policy would be announced sooner rather than later.

Related: Bank of England rules out interest rate rise amid weak UK growth