Regions

Carney Risks Disappointment as Bank of England Resists More Quantitative Easing

July 4
7:16 AM 2013

Bank of England Governor Mark Carney continued with his efforts to drive UK away from its complex economic circumstances. His first week as governor corresponded with studies that signalled strengthening in the nation's economy.

The said growth in UK was expected to lessen the need for financial stimulus. However, its recovery was not guaranteed as bond yields increase.

"He's come in with the promise of shaking things up, and it would be a letdown if he did nothing," a chief economist at Schroders Plc in London, Keith Wade, said. Wade currently owns US$359 billion under management. "A statement of intent would be a way of doing something when it's too soon to be turning around the majority or changing the policy toolkit."

The Monetary Policy Committee of UK would keep the quantitative easing and benchmark interest rate unaltered. The bond-purchase goal would be kept at GBP375 billion equivalent to US$573 billion. The key rate would remain at 0.5% which was a record low. 

At 8:29 am in London, the pound fell 0.2% against dollar and traded at US$1.5264. According to Bloomberg Correlation-Weighted Indexes, within the last three months, pound rose by 4% in opposition to its nine developed-country peers.  

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