Bank of England Governor Mark Carney said his flagship communications policy is supporting the U.K. economic recovery, as he answered lawmakers who suggested that it may be confusing the public and doubted by investors.
Less than two months since Carney and colleagues signaled that they don’t intend to raise their key interest rate from 0.5 percent before late-2016, financial markets are betting they’ll have to move sooner as the economy shows signs of strengthening.
With the pound rising and short-sterling contracts falling in recent weeks, Carney today defended his view that unemployment will be slower to drop than investors think, and said the greater transparency promoted by the BOE is encouraging businesses and consumers to spend.
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