The Q&A continues with GBPUSD at 1.5982 from 1.6002 highs and EURGBP bouncing off the 0.8380 support I highlighted yesterday

Carney:

  • BOE is giving confidence that monetary policy set to be consistent with inflation target and recovery
  • could imagine reaching unemployment threshold and keeping rates unchanged
  • “constant rate”scenario shows potential advantages of keeping rates unchanged after htting 7% unemployment
  • if we had not issued fwd guidance markets would be asking whether BOE would be raising rates today
  • as labour market heals unemployment rate should return to pre-crisis normality of 5%
  • UK consumption growth is not debt-fuelled but funded by income
  • real wage growth needed to sustain consumption growth
  • BOE makes policy for the whole country not just ” inside the Circle Line” ( a reference to the London tube system)
  • real estate valuation is “very elevated” in parts of the UK

Bean:

  • PMI surveys were a good guide to BOE rate moves before crisis when economy was at full capacity
  • situation very different now
  • key message of fwd guidance is that policy is linked to eliminating slack, not to growth rates

ADD:

Yes, folks it’s still going on !

But ntg much of note at the moment

Now ended 11.32 GMT