Carney's Speech draws to a close, remaining headlines and a firm pound as the outcome
BOE governor Carney has now finished speaking at the upper House of Lords Economic Affairs Committee, with the remaining key headlines, via Reuters, found below. The market had been expecting plenty of questions about Brexit and was tuned in to hear of any insights into the path of interest rate hikes - we got a lot of everything and the pound is subsequently supported on the session so far in the US while otherwise, the dollar is also on a stronger footing.
Key notes:
- BoE’s Carney: Seeing ‘gradual firming’ in wages, particularly in private sector.
- BoE’s Carney: Inflation target is fit for purpose.
- BoE’s Carney: Doesn’t advocate changing inflation target to CPIH from CPI.
- BoE’s Carney: Since economy Is closer to full capacity, the decision on how fast to return inflation to target becomes ‘much more conventional’.
- BoE’s Carney: Seen a decline in consumer debt level, but it remains elevated.
- BoE’s Carney: Some pickup expected in labour mkt.
GBP/USD moves off highs as USD recovers momentum
What is the market looking for from this event?
Mark Carney is Governor of the Bank of England and Chairman of the Monetary Policy Committee, Financial Policy Committee and the Board of the Prudential Regulation Authority. His appointment as Governor was approved by Her Majesty the Queen on 26 November 2012. The Governor joined the Bank on 1 July 2013. The market is expecting plenty of questions about Brexit and will be tuned in into hearing of any insights to the path of interest rate hikes.