Bond managers: BoE will backtrack on rate rise guidance

Last week, new BoE governor Mark Carney indicated the Bank will not consider raising interest rates until the unemployment rate falls to 7% (from a current level of 7.8%) – something it does not expect to happen until the second half of 2016. However, bond managers said a combination of better economic data and caveats to the Bank’s guidance are leading to UK rate hike expectations being brought forward. “If you take a look at what the PMI data is indicating, growth could well be a lot stronger than the BoE has predicted, which will force Carney to backtrack on his words,” said Bob Jo...