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.

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