The Q&A continues with GBPUSD at 1.5982 from 1.6002 highs and EURGBP bouncing off the 0.8380 support I highlighted yesterday
Carney:
- BOE is giving confidence that monetary policy set to be consistent with inflation target and recovery
- could imagine reaching unemployment threshold and keeping rates unchanged
- “constant rate”scenario shows potential advantages of keeping rates unchanged after htting 7% unemployment
- if we had not issued fwd guidance markets would be asking whether BOE would be raising rates today
- as labour market heals unemployment rate should return to pre-crisis normality of 5%
- UK consumption growth is not debt-fuelled but funded by income
- real wage growth needed to sustain consumption growth
- BOE makes policy for the whole country not just ” inside the Circle Line” ( a reference to the London tube system)
- real estate valuation is “very elevated” in parts of the UK
Bean:
- PMI surveys were a good guide to BOE rate moves before crisis when economy was at full capacity
- situation very different now
- key message of fwd guidance is that policy is linked to eliminating slack, not to growth rates
ADD:
Yes, folks it’s still going on !
But ntg much of note at the moment
Now ended 11.32 GMT