GBP/USD is on the rise following the release of BOE governor Mark Carney’s speech. Carney says that the time to begin raising rates is getting closer. However, he repeats the previous stance that rate rises will be slow and gradual. These are hawkish words. However, it’s important to remember that Carney made comments in both directions in the past.
Update: now Carney signals a rate hike only in the spring – and the pound falls. Perhaps the newswires are to blame for the zig zag and not Carney this time, but the pair is certainly back to its roller coaster style.
The pair made a move above 1.6150 but then retreated. It is hard for the pound to recover.
His other comments do not deviate too much from previous statements. The Canadian in charge of the Bank of England still sees slack in the labor market and sees the inflation outlook as benign.
Regarding the sensitive issue of wage growth, Carney sees signs of modest wage growth, and he expects it resume in the middle of next year.
Earlier, UK data was quite mixed and left the scene for the Scottish referendum speculation, which remains “too close to call”. The uncertainly badly hurt the pound.
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