BoE's Carney: Market sees greater chance that Fed will hike rates
|Bank of England's Governor Mark Carney is still on the testimony at the House of Lords, stating that Sterling's move reflects the market perception of the potential relation between the United Kingdom and the European Union. He adds that market sees greater chance that Federal Reserve will raise rates and has contributed to USD strength.
More headlines (via Reuters):
- Says BOE does not target exchange rate but is not indifferent to it
- Says have seen fairly substantial move in exchange rate
- We have to take FX move into account as a committee
- Not all scenarios allow monetary policy to be as accommodative after referendum
- Sterling started to move as it becomes clearer about the timing of Article 50 to leave EU
- Says too early to reach conclusions about future relations between UK and EU
- Perception about UK relation with EU "may well be mistaken"
- Says MPC needs to consider how persistent move in sterling is likely to be
- Move in sterling since conservative party conference not driven by perceived shift in BOE policy stance
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