Speaking on LBC radio
He adds:
- No huge differences on MPC about trajectory for rates
- There was a need for a rate cut post-Brexit
- Cannot say when future rate hikes could come
- Yield curve has moved relative to September
- Expects banks to pass on rate rise over fullness of time
- House price rise looks relatively sustainable
- Main goal is to keep inflation at 2%
- If inflation picks up would have to look at range of factors when considering rates
- inflation rise in UK is to do with sharp rise in import prices after pounds fall and rise in oil prices
- Likely to be some movement of banking operations out of London because of Brexit
- Suspects to see some impact of Brexit on businesses activating contingency plans if we do not get news on terms by spring
The comments have had limited impact on the GBPUSD. However, the pair remains below its 100 hour MA at 1.31121. Staying below it (and up to 1.3125) keeps the bears more in control in the GBPUSD. Getting and staying below the 100 day MA at 1.3098 is what shorts will like to see develop. Otherwise, the selling will likely dry up.
