BOE governor Carney continues Q&A 3 Aug

  • will not tie hands of MPC by expanding on view on first rate hike timing
  • we can take a little longer to bring inflation back to target
  • MPC thinks it would be appropriate to withdraw more stimulus than market has embedded if BOE forecasts are correct

Once again disappointing to hear the Old Lady following the market rather than leading it.

  • market rate curve expectations for 2 rate hikes by 2020 are insufficient
  • there could be more rate hikes than market expects but less than a traditional rate hiking cycle

Nothing new on that. Repeating previous comments.

  • BOE is engaged in sustained contingency planning for all possible Brexit outcomes

But it's going to be a "smooth transition" hey Marky?

GBPUSD continues to fall to 1.3125 as EURGBP posts 0.9031.