Soft wage data shows that "that there has been more spare capacity in the labour market than we previously had thought," the central bank chief said before
"We must make sure that the economy absorbs wasteful spare capacity before we start normalising interest rates," Carney said, adding that the exact timing of the first hike would be directed by the data.
In economic news,
Mortgage approvals fell to 41,757 in May, a nine-month low, from 41,934 in April. But it was above the expected level of 41,000.
The pound fell to a 5-day low of 0.8024 against the euro and a 6-day low of 172.93 against the yen, which may be compared to Monday's closing values of 0.7988 and 173.51, respectively. If the pound continues its downtrend against the euro and the yen, 0.81 and 172.00 are seen as its next possible support levels.
The pound declined to 1.5153 against the franc, its lowest since
Looking ahead, US S&P/Case-Shiller's home price index and house price index for April, new home sales for May and consumer confidence index for June are due to be released in the
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