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.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.