Further comments by Carney
- Forward guidance is particularly relevant when equilibrium rates are low
- The MPC is the one who decides on tweaking the forward guidance
- UK economy is so far good enough, but the data needs to fill in or additional stimulus will be needed to reinforce the recovery
He is also saying that different people have different interpretation of the data and they have their own views as to how to price that in. But essentially, I reckon he is trying to say that what markets have priced in is consistent with their messaging.
And they have very much made it more clear this time around. If the data continues to show some nascent signs of a recovery, then it is likely they won't cut rates for the time being.
I'm starting to think that the pound will face a bit of conflict in pricing now. Does this hold decision rule out a rate cut this year or does it just merely prolong one?
