Tuesday, 19 August 2014

Carney’s Comments Help Pound Gain Ground



The Great Britain pound rose today after Bank of England Governor Mark Carney said over the weekend that the central bank may start raising interest rates before actual wage growth kicks in.

Wages came to market participants’ attention after the BoE inflation report predicted that this year’s earnings growth will be half of the previous estimates. Yet Carney was less dovish in his interview to Sunday Times over the weekend than could be expected considering the latest economic developments. He said that policy makers are confident that real wages will be growing and they “don’t have to wait for the fact”.

GBP/USD rose 0.23 percent to 1.6731 as of 18:39 GMT today. EUR/GBP dropped from 0.8003 to 0.7986. GBP/JPY advanced from 171.20 to 171.56.

Reference: Vladimir Vyun

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