Carney Speech: Any rate hikes are expected to be gradual and limited
|The Bank of England Governor Mark Carney is delivering his speech at the 2017 Michel Camdessus Central Banking Lecture at the IMF Headquarters in Washington DC with the key quotes, via Reuters, found below:
- MPC majority view that some withdrawal of stimulus likely to be needed in coming months if slack continues to be run down
- Monetary policy may have to "move in order to stand still" due to possibility that global equilibrium interest rates are rising
- De-integration effects of Brexit are likely to be inflationary
- Main question about Brexit's impact on inflation is extent to which it has been brought forward
- Some of the disinflationary shock to demand has been deferred while most inflationary channels have begun to appear
- Reiterates that any rate hikes are expected to be gradual and limited
- Any loss of trade openness with EU after Brexit is unlikely to be immediately compensated by ties with new partners
- Lower immigration due to Brexit could contribute "more materially" to inflation pressure in short-term, only modest impact in long-term
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.