There's nothing major out of the Hole this time around so here's the latest
BOE's Mark Carney was pretty run of the mill and all but kept prior MPC language
- BOE can look through temporary disinflationary effect
- The MPC will focus more on persistent effects
- There's a modest UK exposure to China
- Any downside risk must be weighed against domestic strength
- China developments unlikely to change BOE rate path (that line shows he's concerned though)
- Say he sees BOE rate decision in sharper focus at year end (that's something he's said prior)
- Recent events haven't changed MPC thinking
Fed's Stanley Fischer had a bit to say and it was a lot like his comments yesterday but just said differently
- Fed will raise at a gradual pace
- Fed will consider foreign economies in policy decisions
- Meeting policy goals for domestic economy is good for the global economy
- Fed considers unemployment rates of older workers,. and those who are part time for economic reasons, more closely than usual
- After Chinese events Fed is watching for any possible economic effects more closely than normal
- There's a good reason to believe that inflation will rise
- Some USD related effects are likely to be fading already
- Pressure from oil and labour market slack are also diminishing
- Dollar strength could hold back growth through 2016 and possibly into 2017
- Fed should not wait until inflation is at target before tightening
- Stable inflation expectations have prevented prices from falling further
- Rate path matters more than the timing of the first hike
- Fed needs to proceed cautiously with normalisation
ECB's VP Vitor Constancio had a couple of lines out, nothing amazing. He said that the activity/inflation link had strengthened in the Eurozone and that inflation's recovery depends on real activity
No one has been pulling up any tress at Jackson Hole, at least with the main CB's comments. WSJ's Jon Hilsenrath has a pretty good take up on the rest of the meetings and chatter but even he's having to dig around for news from Friday to fill the pages
I don't think there's anything here for markets to get their teeth into early in the Asia open, The dollar finished on a high note on Friday so if there has been any increased profit taking into the weekends (last ebbs of fallout from early in the week), we may find those traders getting back in early doors
I'm off now to carry on celebrating my team's first win at Liverpool's Anfield ground for 52 (fifty two) years, typically the one time I don't go
Carney and Fischer at Jackson Hole. More lowlights than highlights