Carney Rates Remark May Have Caused Overreaction, Posen Says

Bank of England Governor Mark Carney may have caused financial markets to react excessively when he warned that interest rates could rise sooner than expected, a former BOE policy maker said.

“I think the markets are overreacting,” Adam Posen, president of the Washington-based Peterson Institute for International Economics, said in an interview with Bloomberg Television’s Guy Johnson and Olivia Sterns in London today. “I think he got the calibration wrong and didn’t fully price how big it was going to be.”