GBP: Timing of a Fed move is not decisive for timing of the BoE – Deutsche Bank

By FXStreet FXStreet (Delhi) – Research Team at Deutsche Bank, note that the BoE governor has dismissed all speculations about the BoE move should be only after Fed’s move and suggested that this is not the case.

Key Quotes

“Over at the BoE, after voting to hold rates (as expected) on an 8-1 majority, the committee made mention to ‘a deterioration in the global demand environment’ which could slow the pace of expansion further, making special mention to the slowdown in emerging markets and China.”

“Despite some dovish tints in the statement, BoE Governor Carney, speaking later in the day, offered a slightly different angle saying that timing of a Fed move is not decisive for timing of the BoE, making mention in particular that over the course of five rate cycles since the UK adopted inflation targeting, the BoE has moved before the Fed in two of them.”

“Carney was also slightly more hawkish on the inflation outlook, noting that ‘importantly we are seeing building wage pressures’ and that ‘you can achieve your inflation target even in the face of some very large external forces’.”

Check here for recent report on BoE titled “BoE Governor Carney still considering raising rates this year – MUFG“
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Source:: FX Street