Comments by BOE deputy governor, Ben Broadbent
- Expects rates to rise in a limited and gradual manner
- Market expectations for rates are lower and that is the main reason for stronger forecasts in BOE inflation report
Well, with Brexit uncertainty still not seen abating and there being no viable resolution to the current impasse, can you really blame markets for not pricing in rate hikes by the central bank? It's a bit foolhardy to ask market participants to do so when policymakers themselves attach a conditional scenario to Brexit with their forecasts/rate outlook.
Broadbent: Brexit is going this way...
Carney: *silently thinking* Can I go back to Canada yet?