Charlie Rose Talks to the Bank of England's Mark Carney

Describe your thoughts on setting policy.
Monetary policy got itself into a cul-de-sac where it didn’t take financial markets seriously. We need to provide a lot of stimulus to the U.K. economy. We’ve got big headwinds from Europe, from the currency, from ongoing deleveraging. But that stimulus can create risks. We need to take other steps in order to reduce those risks, because if we don’t, we’re going to create bigger problems, and we’ll have to pull back too soon on monetary policy, which is the last thing we want to do. If you do smaller things early on, you don’t have to do really big things later. There’s an element of anticipation, and that’s what we’ve tried to do in the U.K.

You talked about the recovery in a speech this week. Where does it stand?
The true recovery is beginning, because the core of the systems is repaired. But we’ve yet to see businesses really starting to invest, really starting to believe. And the uncertainties are really about the future of demand. Is it going to be robust, or can I wait another quarter—and another quarter? I feel pretty comfortable about the near-term outlook, but the longer term is going to turn on these bigger questions of demand and what happens to productivity.