Carney set to put sterling to the test

Peter Garnham
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The Bank of England’s (BoE) monetary policy committee meeting on Thursday is likely to be overshadowed by an appearance in the UK parliament from Mark Carney, the central bank’s governor elect.

Carney is set to be questioned by the Treasury select committee on Thursday, ahead of the announcement of the Bank’s policy decision.

With the economic outlook broadly unchanged since its last forecasts in November and the minutes of its last policy meeting in January slightly more hawkish than at its previous gathering, the BoE is widely expected to leave interest rates and its asset purchase scheme on hold at 0.5% and £375 billion, respectively.

Carney’s performance will, therefore, be of more importance to sterling watchers, who have seen the pound come under pressure since the start of the year as haven flows from...