Economics
Bank of England Rate Decision Tests Carney’s Credibility
- BOE governor has previously over-promised on rate moves
- Markets are pricing a 90% chance of an increase on Nov. 2
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Since taking over as governor of the Bank of England four years ago, Mark Carney laid the groundwork for an interest-rate increase multiple times. All he delivered was a single cut after last year’s referendum to leave the European Union.
Yet having prepared investors for the first U.K. rate hike in a decade on Thursday, there are warnings Carney is making the wrong move at the wrong time. In more ways than one, it’s an unusual rate increase.