BoE’s Carney Says Rate Position Did not Change With China Turmoil

Bank of England Governor Mark Carney said on Saturday that a slowdown in China’s economy could push down further on inflation but it did not change, for now, the central bank’s position on when and how it might increase interest rates.

Carney, speaking at an annual U.S. central banking conference in Jackson Hole, Wyoming, reiterated his view that the recovery in Britain’s economy “will likely put the decision as to when to start the process of gradual monetary policy normalization into sharper relief around the turn of this year.”

That comment echoed one he made in mid-July, before global financial markets took a hit in recent days over concerns about the health of China’s economy.

The BoE cut rates to 0.5 percent, a record low, at the height of the financial crisis in 2009. Although inflation in Britain is almost zero, the Bank is likely to start raising rates in the first quarter of next year as wage growth picks up, economists predict.

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza