BoE’s Ramsden: Brexit process makes setting policy difficult

The Bank of England's Deputy Governor David Ramsden, who voted against the BoE's rate hike earlier this month, recently delivered his prepared remarks at King's College, in London, with key highlights (via LiveSquawk), found below.

Brexit process makes setting policy difficult.

MPC must balance trade-off between the speed of return to inflation target and supporting jobs and economic activity.

Agrees with overall framework for setting monetary policy in this exceptional period.

Currently little evidence above target inflation causing domestic ‘second round’ effects.

Willing to wait for more evidence on the evolution of wage and domestic cost growth before withdrawing stimulus.

Agrees with MPC’s current analytical approach, but says his assessment of economic outlook differs.

Brexit uncertainty means no need to rush to remove stimulus.

Key notes

EU’s Barnier: Brexit means UK financial services providers will lose their EU passport.

Speaking at Centre for European Reform in Brussels, the European Union's chied Brexit negotiation, Michel Barnier was noted saying that EU must continue having a close relationship with the UK. 

GBP/USD retreats sharply from 2-1/2 week tops.

The GBP/USD pair trimmed some of its strong gains and retreated around 50-pips from 2-1/2 week highs touched earlier. 

About BOE interest rate decision

BoE Interest Rate Decision is announced by the Bank of England. If the BoE is hawkish about the inflationary outlook of the economy and raises the interest rates it is positive, or bullish, for the GBP. Likewise, if the BoE has a dovish view on the UK economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.