BoE press conference live
Link to watch live:
Key points from Carney:
- With prospect of excess demand, modest tightening of monetary policy is appropriate
- Q1 slowdown primarily reflected weather, not economic climate
- Market yield curve implies gently rising path for bank rate
- Trade tensions have increased and global growth more uneven
- UK exporters remain in a sweet spot
- Above-target inflation reflects past sterling depreciation and higher energy prices
- Bigger picture is of external cost pressures easing, domestic inflation pressures building as slack is absorbed
- UK labour market is strong
- Pay settlements will rise further this year, agents reports suggest
- Limited and gradual tightening of monetary policy likely to be needed
- If bank rate stays at 0.75%, inflation will be above 2% for the next 3 years
- MPC forecast continues to be based on relatively smooth Brexit transition
- Brexit talks now entering a critical period
- So far British households have been resilient to Brexit news
- Risk premia on sterling assets have increased somewhat in recent weeks
- Some signs that business sentiment is softening due to Brexit
- Equilibrium interest rate is not a direct guide to setting monetary policy
Cable now dropping to new lows as Carney takes questions:
For context, remember the levels we discussed earlier:
