Carney spoke in an interview with ITV:

  • Future BOE rate increases will be gradual and limited
  • There is lots of spare capacity in the economy
  • Floods will affect the near-term outlook but BOE will look past it

It’s the push and pull with the BOE. The economy is picking up and the market is eager to price in rate hikes but he’s on a quiet campaign to tell the market that rates will stay low.