Incoming central bank chief's remarks benefit pound

Posted On: February 07, 2013

Commentary by the incoming chief of the Bank of England pushed up the English pound against the U.S. dollar on foreign exchange markets on Thursday, according to Bloomberg.

Presently chief of the Bank of Canada, Mark Carney said monetary policy presently in place in the U.K. just might be OK as far as helping the economy is concerned. That remark reduced speculation about the likelihood of Carney implementing additional intervention.

"The market was going into the testimony expecting a much more dovish outlook," head of Group of 10 currency strategy Ned Rumpeltin with Standard Chartered in London told the news source on Thursday. "With short positioning on the pound, and Carney was much more balanced and well-considered, that may have caught some people by surprise if they were looking for a much more assertive stance."

Carney is set to assume the leadership of the Bank of England in July when Mervyn King will depart.

Carney, who appeared before the English Parliament on Thursday, will become the first foreign-born official to run the 318-year-old institution, according to Reuters.
 

Category: Industry News

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