New BoE Chief Carney will Devalue Sterling, Pimco Warns!

• New BoE chief Carney will devalue sterling, Pimco warns! 
  by Philip Aldrick, http://www.telegraph.co.uk/ 
  Mark Carney will try to devalue the pound by as much as 15pc after he takes over as Bank of England Governor in July in a last ditch attempt to cement the UK recovery, Pimco, the world’s largest bond house, has warned.
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  Growth in Britain is going to remain “challenged” for the next three to five years as the Government continues to shrink the public sector and cut the budget deficit.
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  As banks and households also grapple with their excessive debts, “that leaves one policy tool outstanding, which is basically the currency”, Pimco managing director and sterling bond head Mike Amey said.
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  George Osborne has pinned his hopes for the economy on Mr Carney, Canada’s central bank boss until the end of the week, living up to his reputation as a monetary “activist” to help ease the transition to an export-focused economy less dependant on consumer spending. Although economists reckon there is little more central banks can do, Mr Carney has insisted policy is not “maxed out”.
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  “I think a lot of what Mark Carney is going to do – clearly he’s not going to state this upfront – is to try and keep sterling certainly from going up and, probably, he’s going to want to see it go lower,” Mr Amey said. “On a trade weighted basis I think another 10pc to 15pc is manageable. Against the dollar we’re trading at $1.50 now. The low in 2009 was $1.37. I think that’s eminently achievable. I don’t think $1.37 is a big ask.”
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