BoE governor to issue guidance on interest rates

<p>Mark Carney is expected to speak on interest rates soon.</p>

Incoming governor of the Bank of England Mark Carney is expected to give forward guidance on interest rates soon.

Mr Carney, who took over the role from Sir Mervyn King yesterday (July 1st), will give an indication of his plans for future monetary policy.

Interest rates in the UK have remained at a record low for the country of 0.5 per cent for more than four years.

Azad Zangana, European economist at Schroders, explained Mr Carney will find some encouraging signs for the economy, which chancellor George Osborne recently claimed is no longer in "intensive care".

"Whether forward guidance moves financial markets or not, there will still be an impact on the decision making process of the average consumer," he said.

Sir Mervyn was known to be in favour of increasing interest rates and amending the quantitative easing scheme, but could not get the backing of the Monetary Policy Committee to do so.

It is not yet clear what course Mr Carney will take, but it is sure to have an effect on forex markets.

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