25 Feb 2015
BoE does a ‘Fed’, in terms of forward guidance – BTMU
FXStreet (Barcelona) - Derek Halpenny, European Head of GMR at Bank of Tokyo-Mitsubishi UFJ, notes that BoE failed to provide the markets anything new in terms of monetary policy outlook, perhaps mimicking yesterday’s Yellen’s speech.
Key Quotes
“Like the testimony from Fed Chair Yellen, the testimony from BOE Governor Carney to the Treasury Select Committee in London yesterday didn’t offer the markets anything new in regard to the outlook for monetary policy in the UK.”
“Vague, unrevealing statements on the next move being a hike sometime over the next two years was about all we got.”
“We did sense that Martin Weale, who also spoke, is probably not too far away from shifting back to his vote for a rate increase.”
“Kristin Forbes also spoke yesterday and her comment of there being "limited slack" in the UK economy may mean she’s more close to a vote for a hike than some of the others.”
“In any case, we still believe that the current pricing in the financial markets is incorrect and that the MPC will soon be a lot more concerned over wage pressures and the potential inflation consequences stemming from the labour market.”
“The pound is the third best performing G10 currency on a year-to-date basis after the Swiss franc and the yen and we see this strong performance continuing.”
Key Quotes
“Like the testimony from Fed Chair Yellen, the testimony from BOE Governor Carney to the Treasury Select Committee in London yesterday didn’t offer the markets anything new in regard to the outlook for monetary policy in the UK.”
“Vague, unrevealing statements on the next move being a hike sometime over the next two years was about all we got.”
“We did sense that Martin Weale, who also spoke, is probably not too far away from shifting back to his vote for a rate increase.”
“Kristin Forbes also spoke yesterday and her comment of there being "limited slack" in the UK economy may mean she’s more close to a vote for a hike than some of the others.”
“In any case, we still believe that the current pricing in the financial markets is incorrect and that the MPC will soon be a lot more concerned over wage pressures and the potential inflation consequences stemming from the labour market.”
“The pound is the third best performing G10 currency on a year-to-date basis after the Swiss franc and the yen and we see this strong performance continuing.”