BOE’s Mark Carney speaking in Washington
- Mon Pol May Have To Move In Order To Stand Still Due To Possibility That Global Equilibrium Interest Rates Are Rising
- Main Question About Brexit’s Impact On Inflation Is Extent To Which It Has Been Brought Forward
- Some Of The Disinflationary Shock To Demand Has Been Deferred While Most Inflationary Channels Have Begun To Appear
- Reiterates That Any Rate Hikes Are Expected To Be Gradual And Limited
- Any Loss Of Trade Openness With EU After Brexti Is Unlikely To Be Immediately Compensated By Ties With New Partners
Not a hawkish follow up to the comments from the MPC last week, and the quid has suffered for it with GBPUSD down to near 1.3500 from around 1.3560. Markets like certainty and when it’s instead tied to ‘ifs’ and ‘maybe’s’, that’s a recipe for markets to dial down expectations.