In Last Address as BoE Mervyn King Says Interest Rate Rise Not Imminent

Global markets have “jumped the gun” in betting that interest rates will go back to normal levels anytime soon, the outgoing Bank of England governor, Mervyn King, has said in reaction to the widespread sell-off following Federal Reserve comments last week.

Speaking at his last hearing with the all-party Treasury committee, King raised concerns over bank lobbying and bemoaned the “disaster” of austerity in some parts of the eurozone. He advised his successor, the Canadian Mark Carney, to be true to himself.

Asked about the global shares rout, King said the Fed’s chairman, Ben Bernanke, had been very clear when he talked about tapering the stimulus to the US economy. Bernanke “certainly wasn’t announcing the end of QE”, King said, in reference to the bond buying programme known as quantitative easing.

via The Guardian

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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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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