BoE's Pill: Important we do not do too much on monetary policy

Eren Sengezer FXStreet

Bank of England (BoE) Chief Economist Huw Pill told Times Radio on Friday that it's important for the BoE to not do "too much" on monetary policy, per Reuters.

Key takeaways

"We have had some better news of late."

"MPC's job is to return inflation to target and hold it there over medium term."

"MPC feels it needs to see the job through."

"I am confident Thursday's rate rise was necessary and appropriate."

"I do not want to steer market interest rates on day-to-day basis."

"We have to be prepared for shocks."

"We have to recognise we have done a lot with monetary policy already."

"There is still a lot of policy in the pipeline."

"MPC has changed language quite substantially."

"MPC signalled need for continued watchfulness."

"We have reasonably high degree of confidence we will see inflation fall this year."

"Focus is on whether inflation declines further ahead."

"The notion of whether we are in recession or not may vary during the year."

"It is key to see that underlying all this is very weak performance on supply side of the economy."

Market reaction

Pound Sterling struggles to find demand following these comments and GBP/USD was last seen trading slightly below 1.2200, where it was down 0.22% on a daily basis.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.