empty
 
 

2018.04.2001:58:00UTC+00BoE’s Carney Dampens Bets of Rate Hike in May

Bank of England Governor Mark Carney hinted on Thursday that financial markets were wrong to assume that an interest rate hike in May should be expected, underlining that there were also “other meetings” this year.

Speaking to BBC news on the sidelines of the IMF spring meetings in Washington, the leader of the English central bank said that the interest rates were still likely to gradually increase this year, but softer data had given the Monetary Policy Committee a reason to hesitate. He said the committee was now aware that there are other meetings in 2018 when it can consider rates.

The comment dashed widespread expectations for monetary policy tightening in May. Interest-rate futures markets have estimated the probability of a rate increase next month of up to 90 percent.

Carney said he does not want to be too focused on the exact timing, but more on the general path of the policy. He added that Britain should prepare for a “few interest rate rises over the next few years.”

The Sterling pound declined almost a cent against U.S. dollar to its lowest level since April 9 on the back of the comments, in which Carney underlined “mixed” economic data.

While unemployment declined to a new 45-year low and employment growth was strong, wage growth was weaker than anticipated. After the disappointing data, a steeper-than-expected decline in inflation.

In the end, Carney said that the result of the Britain's divorce negotiations with the European Union would be the biggest factor in economic decisions in the coming years. He said that the central bank's decision will be adjusted to the impact of those decisions in order to keep the economy on a stable path.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback