BOE’s Carney: Now is not yet the time for rate adjustment
The much-awaited Mansion House speech by the Bank of England (BOE) Governor Mark Carney is now underway, with the central bank chief noting the following:
Now is not yet the time for rate adjustment given mixed signals on consumer spending and business investment
As spare capacity erodes, the trade-off that the MPC must balance lessens, its tolerance for above-target inflation falls
Rates are currently appropriate given the still subdued domestic inflationary pressures and in particular anaemic wage growth
Would like to see extent to which weaker consumption growth is offset by other components of demand
Monpol cannot prevent the weaker real income growth likely to accompany the transition to new trading arrangements with the EU
Key Notes:
UK: Mansion House speeches in focus - TDS
This morning in UK, BoE Governor Carney and Chancellor Hammond will deliver the Mansion House speeches that were originally scheduled for last week and will be keenly watched by investors, according to the analysts at TDS.
Mark Carney’s speech - BOE Press Conference Today
In the today's Marc Carney Speech, attention will turn to the tone of the comments about the possibility of raising the rate this year and the influence of inflation that reached 2.7% last may.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
