Central Bankers Tell the World Borrowing Costs Are Going Up
- Markets fluctuate on hawkish notes from Europe to Americas
- Weak prices still a challenge but policy direction seems set
Bank of England Governor Mark Carney discusses monetary policy and the potential for removing stimulus at the ECB Forum on Central Banking in Sintra, Portugal. (Source: Bloomberg)
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Global central bankers are coalescing around the message that the cost of money is headed higher -- and markets had better get used to it.
Just a week after signaling near-zero interest rates were appropriate, Bank of England Governor Mark Carney suggested on Wednesday that the time is nearing for an increase. His U.S. counterpart, Janet Yellen, said her policy tightening is on track and Canada’s Stephen Poloz reiterated he may be considering a rate hike.