We have finally heard from the new governor Mark Carney on how he will run his ship during his tenure. The most important comment from his was that the bank would not consider raising interest rates until the unemployment figure fell below 7% (currently 7.8%) and that this meant adding 750,000 jobs and could take 3 years. This is good news for stability and takes away the monthly uncertainty about where rates are going and will have an impact on currency rates. He also confirm that he believe “a renewed recovery is now underway in the United Kingdom and it appears to be
broadening.” alhough not quite at “”escape velocity.”
In other news Australia cuts its rates yesterday by a quarter to 2.5% and many believe that another movement down to 2.25% is likely before the end of the year. This is in response to the government trying to rebalance the economy after the commodities boom of the past few years.
