- Mark Carney, BoE Governor
The Pound has received a boost from the Bank of England Governor Mark Carney, who said that the central bank may still hike interest rates sooner than anticipated if economic data indicates a sustainable growth in real wages. Recent Carney's comments came in contrast to what he said last week when the BoE's Inflation Report showed policy makers revised growth of wages outlook to 1.25% in 2014, from 2.5% they had forecasted in May. After the report Carney underscored that there was more slack in the nation's economy than previously estimated and said that now is not the appropriate time to lift benchmark interest rate. According to his recent comments, however, the Governor still believes the Bank of England will be the first of the major central banks to lift its interest rates given there are sufficient indicators showing real wages will increase sustainably. Inflation has outpaced wage growth for the vast majority of the period since 2008, bringing a prolonged period of falling real pay and living standards for U.K. workers. More information on the BoE monetary stance will come when Carney's Deputy Ben Broadbent comes to Jackson Hole for the annual meeting of the world's central bankers in Wyoming.
Meanwhile, Mark Carney has been accused by Conservative Member of Parliament Mark Field, who believes that the Governor is attempting to delay rate hikes until after the next general election, when interest rates are expected to rise immediately.
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