Flash: Carney reveals phase 2; positive for Sterling - Westpac

FXStreet (Guatemala) - Sean Callow, strategist at Westpac Banking Corporation ABN, explained that Sterling seems to have responded to the upgraded growth forecasts.

Key Quotes:

“Bank of England Governor Carney revealed phase 2 of policy guidance in the latest inflation report. Last August, the Committee intended to maintain monetary stimulus at least until unemployment reached 7%, subject to maintaining price and financial stability”.

“The jobless rate was 7.1% in November and the BoE believes it likely that upcoming data will show that the 7% threshold has been reached”.

“So new guidance ”monetary policy as the economy recovers” was provided which was very long-winded and loaded with caveats. Sterling seems to have responded to the upgraded growth forecasts”.

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