Investors who’ve driven 10-year gilt yields higher ever since Mark Carney joined the Bank of England now have the governor’s blessing.
Britain lost its top credit rating by Moody’s Investors Service, which cited weakness in the nation’s growth outlook and challenges to the government’s fiscal consolidation program.
Mark Carney said rising U.K. mortgage debt may threaten Britain’s recovery as he signaled interest rates might start to rise earlier than anticipated.
When Mark Carney finally begins to lift Bank of England interest rates from a record low, his plan for a gradual tightening suggests changes no faster than once every three months.
The Bank of England will leave its benchmark interest rate unchanged at a record low in the coming week as policy makers hold off tackling inflation on concerns about the strength of the recovery.
Bank of England Governor Mervyn King ’s forecast for persistent inflation led economists to speculate that policy makers are reversing their shift toward adding more stimulus .
Bank of England policy makers may consider the need for more stimulus today in case global market strains worsen, setting aside inflation risks as the recovery threatens to unravel.
"The headline rate could fall below zero in the coming months."
- David Tinsley on Jan 13, 2015
Tinsley Says Portugal Yields are ‘Unsustainable’ March 23