BOE’s Fisher Says Volatility From Fed’s QE Tapering May Continue

Bank of England Markets Director Paul Fisher said recent volatility sparked by the Federal Reserve’s comments on tapering its quantitative-easing program was a “sensible correction” and may continue.

“Spillovers from the U.S. to the U.K. mean that I expect we’ll continue to get volatility as the U.S. exits from its QE,” Fisher told lawmakers in Parliament in London today. “We’re now seeing the market trying to find new levels. I’m not sure that adjustment has fully worked through yet. But they were right to re-price.”