Flash: enter the Carney – TD Securities

FXstreet.com (London) - Richard Kelly, Head of European Rates and FX Research explains his view point on Carney’s debut.

He said the MPC remains fairly divided between hawks and doves, symptoms versus illness in the UK economy, and merits and effectiveness of available tools. “To convey a consensual viewpoint right now will either have to be so diluted as to be fairly inconsequential for the market or suggest no immediate action. Either could leave the market disappointed.”

He suggested that the statement could include the vote immediately, rather than waiting for the minutes, but until Governor Carney has had the chance to explain himself in a fuller context, any decision here risks roiling markets looking for any excuse to sell gilts, as well. “If Governor Carney is moving right away into former Governor King’s shoes and voting for QE now, then market focus turns to Carney being outvoted just like King and questioning whether anything will ever change. If Carney doesn’t vote for QE, then he’s more hawkish than King and the market questions whether anything will ever get better