It cannot be easy crafting an exit from QE, writes Anthony Rayner, but a disconnect between the Bank of England and the market is evident and eroding credibility at what could be a crucial time
Bank of England governor Mark Carney is in the spotlight again, flip-flopping between dovish and, more recently, hawkish comments. This is against the backdrop of August UK consumer price inflation hitting a five-year high, rates elsewhere in the world edging upwards and central bank rhetoric becoming more hawkish. Comments from the Bank of England's Monetary Policy Committee (MPC) have seen UK government bonds sell-off and sterling strengthen, as markets start to price in a rate hike - potentially as soon as November. In fact, the 10-year gilt moved from around 1% to 1.3%, losing capita...
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