A better economy means a rate hike is sooner. The better the accumulative news, the sooner the hike. Carney's metrics are just that, metrics. He is explaining the thought process of the BoE. Nothing he says changes the fundamentals. Better news means sooner hike.
Think about the reverse, when the rates are at or near zero, and no rate cut is at all plausible, markets will still react to negative news, not because a rate cut is possible, but a rate hike is that much farther. I don't believe anything will bring down the pound other than bad news. That's just my two pence.
Think about the reverse, when the rates are at or near zero, and no rate cut is at all plausible, markets will still react to negative news, not because a rate cut is possible, but a rate hike is that much farther. I don't believe anything will bring down the pound other than bad news. That's just my two pence.