27 Jun 2014
Sharp change in the tone of communications could hurt BoE's credibility
FXStreet (Łódź) - David de Ferranti, currency analyst for DailyFX.com, comments in an interview for FXStreet on BoE governor Mark Carney's dovish remarks before the Treasury Select Committee on Tuesday.
Key quotes
"Carney wants to see market expectations more accurately reflect the prospect of interest rate normalization to avoid a sudden spike in volatility down the track."
"Shaping expectations is an important part of policy, yet is a delicate game for any central banker."
"By backtracking on his hawkish comments earlier in the month Carney may have endangered the bank’s credibility which could impede their efforts to steer the market going forward."
Key quotes
"Carney wants to see market expectations more accurately reflect the prospect of interest rate normalization to avoid a sudden spike in volatility down the track."
"Shaping expectations is an important part of policy, yet is a delicate game for any central banker."
"By backtracking on his hawkish comments earlier in the month Carney may have endangered the bank’s credibility which could impede their efforts to steer the market going forward."