Breaking: Bank of England Governor Says Time to Raise Rates Closer

Comments from the Bank of England's Governor Mark Carney have sharply moved the British pound this morning in London. After his statement that the point at which interest rates are going to move higher is moving closer, the 'cable' spiked higher across the board.

Just as during the previous global interest rate cycle, the Bank of England has asserted itself as one of the monetary authorities likely to move on rates sooner rather than later. That said, all of the Bank of England speakers stated this morning that the pace of rate increases is likely to be much lower than on previous occasions.

Over the next three years I see no scenario where rates would move towards historic levels

Mr. Carney added that the U.K. rate hike cycles are usually much less larger than U.S. ones. Prior to this speech, the Bank of England was expecting to move on rates in the first quarter of 2016. However, as household indebtedness has declined the rates are likely to move higher in the coming quarters.

Adding to his comments on future rate increases, Mr. Carney said, "Households should focus on rate path, not the timing of the first rate hike."

The liftoff in rates is going to have an effect on brokers as well, since interest rates income has been substantially lower than during the years before the great financial crisis.

"Over the next three years I see no scenario where rates would move towards historic levels," Mr. Carney elaborated.