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BoE's Carney: Time for rate hikes drawing near

FXStreet (Łódź) - As expected, BoE governor Mark Carney signalled in his speech at the Institute and Faculty of Actuaries General Insurance Conference in Wales, that an interest rate hike was drawing near, but failed to give any more details, only adding that the move would be data dependent.

Once the rises start they will be limited and carried out in a gradual manner, the BoE head stressed.

"Headwinds facing the economy are likely to take some time to die down," he pointed out. "Demand in our major export markets remains muted. Public balance sheet repair is ongoing. And a highly indebted private sector is likely to be particularly sensitive to changes in interest rates."

Carney assured however that the BoE is conscious of risks stemming from a prolonged period of low rates, especially for the housing and financial markets.

As far as the UK insurance sector is concerned, the BoE will update regulation in order to be able to discipline insurance executives and actuaries in case of misconduct, such as it had been made possible in the banking sector.

Following the comments GBP/USD climbed through the 1.6300 level to 1.6330.

BoE's Carney: Low rates posing risk for housing and financial markets

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