The Bank of England governor, Mark Carney, will attempt to shore up his flagship "forward guidance" policy on Wednesday amid signs it is not having the desired effect on the City. The guidance, set out earlier this month, was intended to signal that interest rates would remain at their historic low of 0.5% for years to come, and quell market fears that burgeoning economic growth would see them rise sooner. Unfortunately for the new governor, traders were soon picking apart a series of caveats to the announcement which prompted fears that rates might rise sooner than expected – and sending bond yields up. It means that ... (full story)