Carney Starts Early Forward Guidance as BOE Holds Bond Purchases

Mark Carney signaled that the Bank of England will keep interest rates at a record low for longer than investors had expected as he used his first meeting as governor to give more insight into future policy.

The “implied rise in the expected future path of bank rate was not warranted by the recent developments in the domestic economy,” the BOE said in a statement in London after it left its benchmark interest rate and bond-purchase program unchanged. The pound fell the most in almost five months against the dollar and investors pushed back bets on the timing of a rate increase.