Image: Policy Exchange Image: Policy Exchange

The governor of the Bank of England Mark Carney has been "too aggressive" in his narrative over interest rates, one of the world's leading market turmoil experts has said.

Speaking to the BBC, Dominic Rossi, global chief investment officer of equities at the world's second largest fund manager, Fidelity, said Mr Carney was wrong to suggest that an interest rate rise was on the cards, before backtracking quite considerably.

Mr Rossi said the governor's approach to forward guidance, where the Bank of England suggests when interest rates may rise and economic trends, was confusing financial markets. The Bank of England today (Thursday) revealed that it voted unanimously to keep interest rates on hold at 0.5% for another month.

Last summer, Mr Carney suggested that the UK economy was getting to a point where it could cope with a small increase in interest rates, and suggested a rise could be expected early in 2016. But in November, he made another speech which outlined the global risks facing the country's economy, signalling that a rise would remain low “for some time”.

Speaking to the BBC, Mr Rossi said: "I think part of that criticism [of Mark Carney] is about the whole case for forward guidance given the fact we live in a world which is highly unpredictable and where external forces can derail your economic forecasts pretty quickly.

"The Bank of England's inflation forecasts have been poor and therefore the guidance towards interest rates has been too aggressive at times and I think the fact the bank is now rolling back from yet another interest rate forecast illustrates the point."

The Bank of England's thinking behind forward guidance is that it allows markets to prepare for what is about to come, rather than surprising them with a shock announcement.

Mr Rossi explained that it is part of a communication problem at the Bank of England, Federal Reserve, European Central Bank, and People's Bank of China.

"I think they [US Federal Reserve] were right to raise interest rates in December," he said.

"But what surprised me, and what I think was a mistake, was how forceful they were after the interest rate [rise] in presenting their case for future rate rises throughout 2016 - up to four.

"And the market became very nervous about that forecast because when looking at inflation data in particular there's no case for such an aggressive move which is having implications for the dollar with knock on effects on currencies, commodities and further price deflation."