Comments from speech in London

  • Rates might need to rise faster than may conditioning path if investment recovers more strongly.
  • Gentle of hikes is expected but contingent on economy growing faster than 1.5% trend rate
  • Uncertainty about consumer spending is somewhat greater now due to slower consumer lending and spending, housing market
  • If Brexit is disorderly, BOE likely to take similar approach to policy as after June 2016 referendum
  • In exceptional circumstances,BOE can tolerate lengthening inflation overshoots, up to a point
  • BOE is confident major UK banks can withstand a cliff edge Brexit
  • If Brexit is smooth, interest rates will be driven by demand in economy

  • MPC reviewing medium-term equilibrium real rate

  • BOE monetary policy is ready for all Brexit outcomes

  • Says guidance reduces unnecessary to volatility

The BOE is painting a picture that can go either way with focus on the Q2 rebounding and the outcome of Brexit.

The comments are not having an impact on the GBPUSD. The pair sits below the 100 hour MA at 1.34077 (and moving lower). We currently trade at 1.3385.