Will new Bank of England chief Carney devalue pound?

World's biggest bond fund suggests Canadian may have no choice to help UK recover from recession

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MARK CARNEY, the incoming governor of the Bank of England, will devalue the pound to help reverse the UK's sluggish growth, the world's biggest bond fund has predicted.

Mike Amey, head of sterling portfolios at Pimco, said Carney could attempt to depreciate sterling by as much as 15 per cent as he seeks to help British exporters tap into foreign demand, The Times notes. Such a move will help Britain to recover from its "worst recession in 50 years".

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