Sterling was given a boost in early trade as comments from the Governor of the Bank of England Mark Carney. The Governor had been making visits to cities in the North of England and was interviewed by local newspapers Thursday, as these comments reached traders on Friday morning Sterling jumped against the greenback by 80 cent to a session high of 1.6132.
Analysts and market commentators have been quick to criticise to the timescale of policy tightening that has been stated in the Forward Guidance. It is expected that the BoE will have to tighten earlier than the 2016 prediction, due to the associated caveats for the Forward guidance.
The key point of the article which moved sterling was the headline “There’s no case for more QE” however the Governor also stated that the “Bank of England would consider the case for more quantitative easing should the recovery falter.”
Carney went on to say “But my personal view is, given the recovery has strengthened and broadened, I don’t see a case for quantitative easing and I have not supported it.”
The full articles was published in the Yorkshire Post.
An ex-member of the MPC said on Twitter:
Contrary to this headline Carney said BOE would do more QE if needed Typical misleading Telegraph http://t.co/rZKhoLr0rb— Danny Blanchflower (@D_Blanchflower) September 27, 2013