BOE's Broadbent into some Q&A
- There's particular danger in looking at lift off date implied by market yield curves
- Some coverage of the inflation report was misplaced in saying rates would not rise until a certain time
- Picture of global growth is nuanced
- The US recovery isn't that strong and underlying productivity growth is weak
- Productivity growth may have started to happen in the UK
- Last Fed comments were a slight corrective to Sep comments
- Fall in commod prices has bought the BOE some time
- BOE didn't see an emerging market crisis
- BOE sees solid recovery in domestic demand
- No single rate path is perfect
I'm in full agreement with him on implied market indicators. Just because we have something in black and white as to what the market thinks doesn't mean that they will be right. Why they are important for trading is that generally lead the market sentiment and that brings opportunity if you believe that they are wrong