1 Jul 2013
Mark Carney takes over as BoE governor
FXstreet.com (Barcelona) - Former Canadian central bank headMark Carney, appointed last year as Bank of England governor, assumed his new position on Monday. Sir Mervyn King's successor will have to start working at full throttle from the very beginning as already this Thursday, on July 4, he will chair his first Monetary Policy Committee meeting.
Carney is the first non-British BoE governor in history and is expected to bring considerable changes to the central bank's monetary policy course. Chancellor of the Exchequer George Osborne chose him for his excellent professional reputation and experience: Carney managed to protect Canada from the worst effects of the global financial crisis under which most of the developed economies are still suffering.
Market experts believe that Carney will attempt to prop up the slow UK recovery by expanding the asset purchase program further. Nevertheless, he is not expected to make any significant moves before August.
“Given the rise in inflation and stronger data, policy looks set to remain on hold”, speculates RBSM FX Trading Strategist Melinda Burgess. “The only risk is the recent rise in gilt yields. If we are to get a surprise, it's likely to be a more detailed accompanying statement. We won't know if Carney followed his predecessor in voting for further easing until the minutes are published on July 17th. This leaves the August meeting as the event risk of the summer, in our view.”
Carney is the first non-British BoE governor in history and is expected to bring considerable changes to the central bank's monetary policy course. Chancellor of the Exchequer George Osborne chose him for his excellent professional reputation and experience: Carney managed to protect Canada from the worst effects of the global financial crisis under which most of the developed economies are still suffering.
Market experts believe that Carney will attempt to prop up the slow UK recovery by expanding the asset purchase program further. Nevertheless, he is not expected to make any significant moves before August.
“Given the rise in inflation and stronger data, policy looks set to remain on hold”, speculates RBSM FX Trading Strategist Melinda Burgess. “The only risk is the recent rise in gilt yields. If we are to get a surprise, it's likely to be a more detailed accompanying statement. We won't know if Carney followed his predecessor in voting for further easing until the minutes are published on July 17th. This leaves the August meeting as the event risk of the summer, in our view.”