19 Jun 2014
BoE minutes backed the bullishness around GBP - Investec
FXStreet (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec. noted the hawkish tone from the BoE minutes.
Key Quotes
"The Bank of England minutes yesterday showed a more hawkish tone than a month ago despite a 9-0 vote to keep interest rates on hold. This was widely expected by markets given Governor Carney had prepared investors with his comments at the Mansion House speech."
"Upside risks to the BOE's H2 2014 GDP forecasts and surprise at the low probability that had been attached to a 2014 rate rise at the time of the meeting, were the other highlights".
"This meeting was followed up by hawkish comments from BOE's Weale, saying he expects wage growth at 4% next year outstripping inflation which will cause inflationary pressures and he argued there is likely less spare capacity in the economy than the BOE had thought."
Key Quotes
"The Bank of England minutes yesterday showed a more hawkish tone than a month ago despite a 9-0 vote to keep interest rates on hold. This was widely expected by markets given Governor Carney had prepared investors with his comments at the Mansion House speech."
"Upside risks to the BOE's H2 2014 GDP forecasts and surprise at the low probability that had been attached to a 2014 rate rise at the time of the meeting, were the other highlights".
"This meeting was followed up by hawkish comments from BOE's Weale, saying he expects wage growth at 4% next year outstripping inflation which will cause inflationary pressures and he argued there is likely less spare capacity in the economy than the BOE had thought."