Bank of England Governor Mark Carney said Thursday interest rates in the U.K. could increase sooner than investors expect.
“There’s already great speculation about the exact timing of the first rate hike and this decision is becoming more balanced,” Carney said at the annual Mansion House speech. “It could happen sooner than markets currently expect.”
Carney said BoE officials will closely watch the labor market to determine the right time to hike rates and will tighten policy slowly when they do begin to take action. The pound jumped to an intraday high against the U.S. dollar in the wake of Carney’s comments.
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