Bagpipes Risk Drowning Out Carney Guidance on Rates: U.K. Credit

Lock
This article is for subscribers only.

Mark Carney has got markets dancing to the tune of his forward guidance on interest rates. He could soon be drowned out by the sound of bagpipes.

Bond and currency traders have been reacting to the Bank of England governor’s every word as they try to divine when the benchmark cost of borrowing might rise for the first time since 2007. They may be paying too little attention to the possibility that voters in Scotland call time on the 307-year-old U.K. in the Sept. 18 referendum, according to David Owen, chief economist at Jefferies International Ltd. in London.