British pound rallies on Carney comments, Scotland poll
British pound rallied against major currencies Wednesday on the Bank of England governor comments.
NEW YORK (AFP) - The British pound rallied against major currencies Wednesday as the Bank of England governor discussed raising interest rates within months and a poll showed lower support for Scottish independence.
Mark Carney, addressing union leaders, said the central bank could raise its main interest rate from a record-low level in early 2015, citing the country s solid economic recovery.
"You can expect interest rates to begin to increase," Carney said, adding that the bank s forecasts show that hiking rates by the spring of 2015 would allow it to meet its jobs growth and inflation targets.
Meanwhile, a new poll showed a slim majority of Scottish voters opposed to leaving the United Kingdom in next week s referendum.
That was a reversal from a poll Sunday that showed majority support for independence, sending shockwaves through British political and business circles.
A "yes" vote would open the door for long, complicated negotiations on how the closely linked economies would be disentwined, including the fate of the pound as Scotland s currency.
"The implications of a Yes vote would be huge, and are magnified by the sense of institutional unpreparedness" for the shift, said Deutsche Bank foreign exchange strategist Oliver Harvey.
