Mark Carney is due to give his first public speech as Bank of England governor today, Wednesday, August 28. Carney will speak at an event hosted by CBI East Midlands, the Derbyshire and
Nottinghamshire Chamber of Commerce, and the Institute of Directors in Nottingham, England. The topic is still unknown but a Q&A is expected.
Carney could drop something new into the mix, reiterate the prior guidance or
avoid anything controversial. This may be one of those times it pays to be
cautious as investors could take anything he says as reason to remove some
profit off the table going into the month end. The UK central bank pledged to
keep interest rates low until unemployment falls to 7 percent, which in their
forecast is three years away, but the slew of good data from the UK has made
that time frame seem too pessimistic. That's pushed up sterling in daily trading and it remains
the best performing of the 36 most actively traded currencies against the dollar month to date.
But it has already pared some of its advance on concern Carney may be dovish
and talk down interest rates.