One quarter, the signal is for higher interest rates; the next quarter, it's the opposite. CityAM reports:
Sterling plunged to its lowest level in two months as governor Mark Carney spoke, with analysts suggesting that the Bank’s latest inflation report was backtracking from the governor’s more hawkish tones in June.
Societe Generale economists pushed back their forecast for the Bank’s first post-crisis interest rate hike, and now argued that the increase would not probably take place until early 2015. RBC Capital Markets added that market expectations for the eventual tightening shifted three months to next April.
Carney’s comments at his Mansion House speech in June had the opposite effect – the governor indicated that rates could rise before markets expected.Do you suppose that the Golden Boy knows what he is doing?