BOE economist and MPC member Haldane with a blog on BOE website 13 Nov
The blog is just published but relates to a meeting while on UK tour on 3 Nov.
Bloomberg published the headline just now and the algos probably helped push up pound as a result. Full blog here
Ntg new in essence. BOE forecasts have long been for CPI to cap up here (3%) somewhere around this time (Oct/Nov) but still staying above 2% target.
"For most of the people I spoke with, small adjustments in the cost of borrowing were unlikely to have a significant impact on their daily lives. The borrowing costs they faced for access to consumer credit were largely unaffected by changes in Bank Rate. And many had few, if any, savings on which to draw.
The Bank's interest rate decision does, however, affect everyone through its impact on their cost of living. Indeed, the main reason the Bank raised rates last week was to keep a lid on inflation. Price rises across the whole economy are currently running well above the 2% inflation target and are expected to remain above-target for the next few years.
It is well-known that increases in the cost of living hit hardest those on lowest incomes. Rising inflation worsens the well-known "poverty premium" the poorest in society already face in the higher costs they pay for the everyday goods and services they buy. Inflation further squeezes the dough in the doughnut. The rise in inflation through this year has already generated such a squeeze on many households' purchasing power. This is not something the Bank, or anyone else, should wish to see continuing for years to come - hence the nudge up in interest rates."
GBPUSD currently 1.3078 from 1.3090. EURGBP 0.8904 from 0.8899
