Comments by BOE policymaker, Silvana Tenreyro
- Risks are tilted to the downside
- Expects inflation to stay below target still
- Expects pay growth to be sustained in the early part of 2020
- UK labour market is very tight, but not tightening further
- Very hard to think that this is the peak of the labour market
Her headline comment just dragged the pound a little lower on the day with cable slipping from 1.3075 to a low of 1.3050. That said, the pound has been a little mixed during the session so far and is quickly back to trading near unchanged levels now at 1.3065.
I think it is quite clear that there are several BOE policymakers who are now leaning more towards a rate cut but it would require some form of trigger to really convince them.
Inflation is certainly a consideration for that trigger, so I reckon keep an eye on that as well as labour market data moving forward as those will play more of a crucial role in dictating pound sentiment over the coming weeks/months.
