Andy Haldane with a comment after a trip to Manchester
A blog post by Haldane on the BOE website.
“For most of the people I spoke with, small adjustments in the cost of borrowing were unlikely to have a significant impact on their daily lives. The borrowing costs they faced for access to consumer credit were largely unaffected by changes in Bank Rate. And many had few, if any, savings on which to draw.
The Bank’s interest rate decision does, however, affect everyone through its impact on their cost of living. Indeed, the main reason the Bank raised rates last week was to keep a lid on inflation. Price rises across the whole economy are currently running well above the 2% inflation target and are expected to remain above-target for the next few years.”
A mildy hawkish comment from an MPC member known for his dovishness. GBPUSD not doing an awful lot but it lifted to 1.3089 and is now trying to stay above 1.3080. With EURGBP still holding support at 0.8900, the upside still might be hard work for cable.