Carney Speech: Any rate hikes are expected to be gradual and limited

Eren Sengezer FXStreet

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

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 climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Breaking: US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States (US) President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israel’s pre-emptive missile attacks against Tehran.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.