Bank of England (BoE) Governor Mark Carney will make his first public speech on Wednesday and analysts expect him to try and persuade businesses that interest rates will remain low for the foreseeable future in the face of growing skepticism over his policy of “forward guidance”.
The Bank of England’s “forward guidance” has sought to cap bond yields at the short-end. Instead, in recent weeks, gilt yields have climbed to multi-year highs and the pound has appreciated against the dollar as the U.K. economy has shown signs of improvement.
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