Carney’s interest rate kerfuffle

Bank of England governor Mark Carney gave investors a jolt last week by saying that interest rates could rise “sooner than markets currently expect”.

In response, interest-rate expectations soared, with the first rise from the current record low of 0.5% now pencilled in for late 2014, compared to the previous estimate of April 2015.

Trade-weighted sterling, measured against a basket of major trading partners’ currencies, jumped to a new post-crisis high.

“For all the headlines and histrionics,” says Liam Halligan in The Sunday Telegraph, there was more to the speech than the half-sentence that caused the “frenzy of [...]

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