BoE’s Carney gives no clear hint on rate hike timing

By FXStreet FXStreet (Mumbai) – The Bank of England (BOE) governor Carney today gave no clear signs as to when the central bank would raise rates. He feels the economy would require a higher level of neutral rates as it recovered from the financial crisis. He said that the BoE would raise rates when required. He added that he preferred to hold rates lower to encourage consumption.

He did mention that rate setters are debating on a possible time to raise rates after having kept rates at a record low for almost seven years now. “The question in my mind is when is the appropriate time for interest rates to increase,” Carney told lawmakers in London. He said preferred rate cuts to QE as an easing tool. He also said there will be room for more easing in the event of the economic downturn.

BoE to hold rates at record low for a while longer

Carney stated that the U.K. will have keep interest rates low “for some time” and that the pace of tightening will be “limited.” The markets that are most susceptible to the risks associated with rise in interest rates are real-estate markets, particularly housing, he added. He mentioned that the housing …read more

Source:: FX Street