Michael Hunter, Market Reporter for the Financial Times, joined Nick Batsford and Zak Mir on the Tip TV Finance Show to discuss the situation surrounding the BoE and the effectiveness of Carney, as well as the chances of a Fed rate hike.
Yellen in a great position
Hunter outlined that central banks need to come to the realisation that not everything will be perfect and set up for an interest rate hike. He continued that Yellen is in a great position with the best set of data and clarity, but the US need to get past inflation and accept not every piece of data will be right for a hike. Hunter commented that if Yellen is planning an interest rate rise in December, then today’s non-farm payroll figures will be very significant.
Is Carney struggling?
Hunter noted that Carney was surprisingly dovish in the BoE press conference yesterday, where he pointed for another year or more of interest rates at historically low levels. On a different note, he believed that Carney has found it difficult to cope with the fluctuating set of data from the UK, and is not greatly in tune with the UK economy or the market. However, he concluded that Carney is not finished yet, and the retrospective view of Carney and his work will be better.
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