BoE Carney Says Rate Hike Not a Guarantee

An increase in Britain’s rock-bottom interest rates is not guaranteed although households should prepare for higher borrowing costs, Bank of England Governor Mark Carney said in comments published on Saturday.

“If we think there is a prospect, a possibility – that’s a possibility not a certainty – of rate rises, then that is far, far better to let the British people know so they can prepare,” he said in an interview with the Mail on Sunday newspaper.

“If events mean that does not happen and rate rises are not appropriate, then we will do the right thing and we will not adjust rates,” Carney was quoted as saying.

The Bank of England cut interest rates to a record low of 0.5 percent in 2009 and has kept them there ever since, even as Britain’s economy recovered strongly over the past two years.

Carney has previously said that a decision about when to raise rates would become clearer around the turn of the year.

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