Carney Says BOE Ready to Ease If Market Rates Hurt

Bank of England Governor Mark Carney said officials are ready to add stimulus if investor expectations for higher interest rates undermine the recovery.

“The upward move in market expectations of where bank rate will head in future could, at the margin, feed into the effective financial conditions facing the real economy,” Carney said in a speech to business leaders in Nottingham, England today. “If they tighten, and the recovery seems to be falling short of the strong growth we need, we will consider carefully whether, and how best, to stimulate the recovery further.”