BOE gov being grilled on some specifics

  • says his views expressed in his speech last week were his own
  • MPC and FPC not consulted prior

Similar line of questioning followed his famous Mansion House speech that sent rate hike expectations soaring, and indeed the pound

GBPUSD falls again on the repeated remarks but demand into 1.4170 still. More behind that at 1.4150. EURGBP also in retreat on equity-led euro sales which is helping to provide a few cable bids.

  • MPC looking to be as clear as possible
  • aggressive risk taking by banks would trigger higher CCB ( counter cyclical buffer)
  • there is a concern right now about direct or indirect stress on major banks

Getting onto the core Financial Stability business now