Carney Seen Trailing Yellen on Rate Increase by Most Since April
- Gap expands to eight months, Morgan Stanley indexes signal
- Nomura says BOE won't wait long after Fed raises to follow
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The anticipated time lag between the Federal Reserve raising interest rates and the Bank of England following suit is at its widest in more than five months, according to Morgan Stanley indexes based on futures trading.
The gauges, which indicate market expectations for the time to the first rate increase in a particular region, now signal the BOE won’t act until eight months after the Fed. The difference has grown since the U.S. central bank refrained from raising its benchmark last month, a decision that added to doubts among investors over whether U.K. policy makers would act as soon as Governor Mark Carney and colleagues had signaled.