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Breakingviews: Carney U-turn shows danger of pseudo-clarity

Friday, June 13, 2014 - 03:40

June 13 - Bank of England Governor Mark Carney has warned rates may rise sooner than expected. His U-turn is a bit rich, says Breakingviews, and shows the risks of perceived transparency.

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Bank of England governor Mark Carney is toying with the markets how fair is -- -- pass and make as ever and a piece of breaking news. And joins now I'm. Is it every space toying with the markets police don't think only used to and in doing it drama coming -- on the cover of blaming the markets -- gold everybody's expectation on. And technical sort of a blood bath on interest rates -- -- -- -- markets as a result. I'm. Let's get them at the border suffer I don't know if that's when you that this rate hikes gonna come. Well given what he's saying this year end of this is seems far more likely than it did yesterday when -- -- and before his speech it's not clear how close to the end of the year the -- will market the price and political team relevant to fifty substance to what he's saying. Judy told George Osborne who's gonna say what is it. I have no idea. Don't just -- -- I mean they -- into -- house prices and Edison immediately speech you must have so I'm. But it was some. Surprisingly. Need to stall. Warning that something was going to happen. And this coming from a man and I know you've been in this annual -- who has. Who is already played down the -- -- for -- -- this. Does it does it does it -- rate rises -- does that does that sound good does it detract from the gravitas he should have. Well he seems to -- away with -- every time he's already zone quite suffused sort of flip flops in the suns they will telling us to watch the unemployment rate told us to stop watching unemployment rate to figure out where rates Linux enterprise. He seems to get away with it each time and from the people I've spoken -- in the market they believe and yes again should he be getting away. That's a very hard question I mean my credibility is probably is sort of not as much as when he stood up in front of boxing and businessmen told them to believe that he was going to keep rates for so long they can have confidence investing for me a little less confidence in his -- match. It. So so and we of course are seen stoning best. -- got a good bounce. It -- it may -- every cost you please -- affects us strategists about how how how long it's going to be before we want seventy on cable. -- were very very close to go to sort of very close to it today already -- and in constable Tom. The market's price today and that is so what happens now. I think it's actually now about the day senses that sentiment expressed -- this to Connie Willis. What's going to be led by the -- and that's not very clear all they looking to wage inflation. Which is Mary -- and doesn't need rate rise of -- and I'd be trying to help sort of saying the housing market with the rate rise as well as as -- measures. I'll say looking at just the unemployment rate productivity which is a puzzle itself. We'll -- -- -- -- also quite mystifying things we can't measure it would seem to be entering into it it's a compliment for the markets know exactly what to look at them. Yeah and I I guess that that element of your trust -- -- Central Bank governor but -- questioning that's a little bit more as well alleged. I guess you -- go by what he says it's not clear that he wouldn't change his mind again I think is so what's the coming created so you're not taken at face value and he says that -- and -- the -- how long the stocks will Lawson somewhat in question what can solve many thanks and that's our president and we -- -- musical side of britney's website. If you're watching US shares of cities and seventeen proceed. Yeah in London time I'm excellent vocalist analysts.