BOE inflation report presser now underway 2 Feb

  • any overshoot of inflation can only be temporary and limited in scope
  • stronger economic projections do not mean Brexit is without consequence
  • uncertainty is weighing on business investment
  • inflation expectations remain well anchored

Well anchored but seemingly not as extensive as first forecast

  • scope to loosen mon pol if spending growth slows more abruptly than expected
  • but could be tightened further than market perceives if wage growth picks up sharply

Not a lot of chance of that happening imho

Watch the Carney & Co Show live here

Meanwhile GBPUSD still trawling round lows but finding a few buyers into 1.2575. EURGBP similarly capping into 0.8600