Bank of England’s Mark Carney up before the Treasury Select committee

3% inflation in October?? How astute 😉

  • More likely than not, will have to write a letter to the Chancellor explaining inflation exceeeding 3% (one of those ye olde rules)
  • We will face a trade-off between inflation above target and supporting jobs and the economy (I call that between a rock and hard place, not trade-off

The pound doesn’t like that last comment as it potentially signals caution over rate hikes. GBPUSD trades down to 1.3237.

  • Building a warchest in interest rate terms for future shocks would not be in line with inflation target
  • Rate hike in coming months may be appropriate (His party line)
Ryan Littlestone

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