Bank of England's Minouche Shafik speaks in London
- Won't vote for a hike until convinced wage growth will be sustained at a level consistent with inflation target
- Can see BOE's bank rate rising quicker than path implied by market curve if downside risks don't appear
- Appreciation of sterling likely to exert some downward pressure on inflation for several years
- Indirect effects to UK from a more dramatic emerging market slowdown could be significant
- The MPC judges that the bank rate of "5 would allow room for material reduction in future
A mix of messages really. The headline is dovish but is countered somewhat by the second comment. The pound doesn't like the message either way from someone who started life on the MPC with a more hawkish tone
1.5116 is the new low after the comments
