Tuesday, 17 June 2014

Carney on interest rates

Markets are a gullible lot. In my latest Forbes post I explain how they have been comprehensively outflanked by a very clever Bank of England governor: 
In his speech at the Mansion House last week, Mark Carney appeared to indicate that interest rates might rise sooner in the UK than markets have been expecting. Predictably, media and market hawks seized upon this as indication that rates will rise towards the end of 2014. Sterling rose, gilt yields rose and the yield curve steepened.
This was, of course, exactly what Carney wanted....
Read on here.
 (picture: Carney speaking at the Mansion House dinner. Courtesy of the Wall Street Journal)

















2 comments:

  1. They've done this over and over. How long before people catch on to the fact that Carney has spent all his credibility? The boy who cried wolf...

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  2. He never had any credibility in the 1st place precisely why Canada was glad to be shot of him and GO was stupid enough to woo him with silly money
    These rich kids with silver spoons in their mouths running the country do not even know the price of a loaf of bread that those dependant on savings income can no longer afford

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