The market wanted a hawkish signal
You can usually depend on Mark Carney to be a hawk. He's repeatedly lured the market into false starts on rates in the past three years, only to walk back.
This time, the market thought the May 10 meeting was a slam dunk for a hike, pricing in an 85% chance. However in an interview on the BBC, Carney didn't deliver the kind of message that hawks were looking for and this happened:
That's more than 150 pips from the highs of the day and down more than a full 100 pips sine the comments were published.
It's the third day of declines after a string of poor data on retail sales and inflation undermined the case for a hike. It's whipsawed a market that touched a post-Brexit high on Tuesday.
