Carney Speech: Households are less vulnerable than they were to a rise in interest rates

Mark Carney, Governor of the Bank of England (BoE), is responding to questions from the press, with key headlines, via Reuters, found below:

• MPC thinks it would be appropriate to withdraw more stimulus than market has embedded, if BoE forecasts are correct
• Asked if first rate hike would be one-off, says market rate curve expectations for two hikes by 2020 are insufficient
• There could be more rate rises than the market expects but less than a traditional rate-hiking cycle
• Households are less vulnerable than they were to a rise in interest rates

Key notes:

GBP/USD still near session lows on Carney’s presser

GBP/USD is now attempting to rebound from daily lows following the press conference by Governor M.Carney, currently hovering over 1.3160/50 after dropping as low as the 1.3140 region.

GBP/JPY tumbles 150-pips post BOE announcement

The GBP/JPY cross witnessed a sharp reversal from 2-week high level of 146.80 and tumbled nearly 150-pips post BOE decision.

About Mark Carney 

Mark Carney is Governor of the Bank of England and Chairman of the Monetary Policy Committee, Financial Policy Committee and the Board of the Prudential Regulation Authority. His appointment as Governor was approved by Her Majesty the Queen on 26 November 2012. The Governor joined the Bank on 1 July 2013.