BOE dep gov with a speech in London entitled "The MPC's forecasts and the yield curve: predictions versus promises"
- economic surveys can offer better guide to rate moves than BOE inflation forecasts
No surprises in that last comment!
- gap between market and economists forecasts for rate rises tends to widen when risky assets do poorly
- shocks can lengthen time to return CPI to target
- UK yield curve currently very flat
- BOE officials not solely concerned with inflation
- Nov yield curve pushed CPI forecast over 2% in 2016
At the recent BOE quarterly inflation report I noted that the MPC seemed to be reacting more to market forces so this speech is timely
BOE biog so you know who you're listening to:
Dr Ben Broadbent became Deputy Governor on 1 July 2014.Prior to that, he was an external member of the Monetary Policy Committee from 1 June 2011. In addition to his membership of the Monetary Policy Committee and Financial Policy Committee, he has specific responsibility within the Bank for Monetary Policy, including monetary analysis and notes.
He was formerly an Economic Adviser at HM Treasury, and Assistant Professor of Economics at Columbia University from 1997-2000. For the decade prior to his appointment to the MPC, Dr Broadbent was Senior European Economist at Goldman Sachs, during which time he researched and wrote widely on the UK economy and monetary policy.
Full text of speech here
BOE's Broadbent - MPC listening more to markets?
