BOE's Carney keeps them guessing

|By:, SA News Editor

Doing his best to shake up currently dead volatility in foreign exchange, Bank of England Governor Mark Carney - days after suggesting markets aren't pricing in rate hikes soon enough - says the U.K. economy still has spare capacity needing to be filled before higher rates are needed.

He also assures any hikes are likely to be gradual and limited.

Cable quickly slipped from about $1.7030 to $1.6970 on his remarks and is currently lower by 0.2% on the session to $1.6991.