Carney Finds Ally in Draghi as Key Rate Kept at 0.5%
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Mark Carney has a new ally in his battle to keep Bank of England policy loose: Mario Draghi.
As the BOE’s nine-person Monetary Policy Committee divides between Carney’s view that low rates are still needed and a faction leaning toward higher borrowing costs, events in Frankfurt may favor the governor by weakening the euro against the pound, helping to curb U.K. inflation pressure. The MPC held its key interest rate at a record-low 0.5 percent today and the European Central Bank cut its benchmark and deposit rates.