Carney: Some removal of stimulus likely necessary as spare capacity erodes

Hawkish headline from Carney

• Some removal of stimulus likely to be needed as spare capacity erodes
• ECB tolerance for higher inflation is limited
• MPC will debate issues around raising rates "in the coming months"
• MPC is clear that its tolerance for above-target inflation is limited
• Readiness to raise rates hinges on how much weaker consumption is offset by business investment
• Other factors the BOE will consider are wages, Brexit and unit labor cost

We've heard the line "in the coming months" before but this is a bit more explicit. It's a matter of 'when' not 'if'. Cable busts above 1.29 on the headlines.