Mark Carney may have been recalling his time at the Canadian central bank when he cooled talk last month of an early Bank of England interest-rate increase.
The Bank of Canada raised its key interest rate by 75 basis points from a record-low 0.25 percent in three moves between June and September 2010. Futures data compiled by RBC Capital Markets show investors were betting on more increases.
“The historical experience there suggests the market consistently priced in too much,” said Sam Hill, senior U.K. economist at RBC in London. “If you were looking for a potential read across it’s worth bearing in mind that was the experience in Canada.”