Britain eyes first tightening of policy since financial crisis began in 2008

Britain could become the first major economy to tighten monetary policy since the 2008 financial crisis, Bank of England governor Mark Carney has signalled.

British government bond yields soared, construction stocks tumbled, and interest rate futures priced in a first hike by December after Carney said rates could rise sooner than markets expected.

“There’s already great speculation about the exact timing of the first rate hike and this decision is becoming more balanced,” Carney said. “It could happen sooner than markets currently expect.”