UPDATE 1-Next Bank of England chief praises U.S. rate signals

Thu Apr 18, 2013 3:35pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Carney says Fed's thresholds help steer markets

* Debate on similar changes at BoE heating up

* UK policymaker says wary about Fed-style approach

By William Schomberg and Louise Egan

WASHINGTON, April 18 (Reuters) - The Bank of England's next governor praised the U.S. central bank for signaling when it might start thinking about raising interest rates, as British policymakers start to thrash out their differences over following suit.

Financial markets have begun to contemplate the end of the U.S. central bank's massive economic stimulus, more than four years after it slashed interest rates to nearly zero to fight off the financial crisis.

"I think the value of the Fed's ... guidance helps a lot with this," Mark Carney, currently head of the Bank of Canada, said at a Reuters Newsmaker event on Thursday.

"It helps market participants understand not exactly the timing of adjustment of interest rates but the minimum conditions before the Fed even thinks about adjustment of interest rates."

Carney is due to stand down as governor of the Bank of Canada on June 1 before moving to London to run the Bank of England in July. He declined to comment on Britain's fragile economy and monetary policy.   Continued...