BoE’s Carney Holds the Key on Rates

Mark Carney has come through his first public argument on interest rates with enough scope to contain dissent for now.

While policy makers Martin Weale and Ian McCafferty voted for an increase this month, the gulf between their thinking and that of the governor’s seven-strong majority suggests his view will hold sway, according to economists at banks including Goldman Sachs Group Inc. and UniCredit SpA.

Investors share that outlook, with expectations for the first rate increase staying stuck in May even after the revelation of the first split in more than three years. Even though Carney has given some mixed signals on the potential timing of tightening, his warnings about risks to the recovery signal an entrenched position in his camp.

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.