BOE dep gov Broadbent with scheduled speech 15 Nov

I highlighted the speech on the agenda earlier but it's more of a fob-off/cautionary tale rather than anything explosive.

GBPUSD unfazed at 1.3165 as is EURGBP at 0.8990 as we wait on US CPI at 13.30 GMT

Says Broadbent in a speech entitled: "Brexit and interest rates"

"It won't have escaped your attention that the MPC raised interest rates earlier this month. It did so, in part, because of the referendum-related decline in sterling's exchange rate. That has pushed up CPI inflation and will continue to do for some time yet, as the rise in import costs is passed through to retail prices.

Our remit says we can accommodate such effects, and take our time in bringing inflation back to target, but only so long we also think there's spare capacity in the economy. As unemployment has declined that position has become harder to maintain. We've been communicating this message for some time now.

The MPC explained over a year ago that there were "limits to the extent to which above-target inflation [could] be tolerated" and that those limits depended on the degree of spare capacity in the economy.

In March, eight months ago, it said in its Monetary Policy Summary that, if demand growth remained resilient, "monetary policy may need to be tightened sooner" than the market expected. Similar points were made in the intervening months. Yet, even as inflation rose, and the rate of unemployment fell further, interest-rate markets continued to under-weight the possibility that Bank Rate might actually go up this year

He concludes:

Predicting others' predictions isn't easy, and I don't think the balance of risks to inflationary pressure, and therefore future interest rates, is obvious. In the meantime, the MPC has little choice, it seems to me, but to take the economic data at face value. To adapt the football manager's cliché, we can only play the economy that's in front of us. What's been in front of us for several months is an economy with above-target inflation and dwindling spare capacity. That's why I think it was the right thing to remove a degree of monetary accommodation. And while things might change - they always do - we will continue to act in a way that ensures stable inflation over the medium term while still providing what support we can to jobs and economic activity.

Full text from BOE here