BoE might raise rates much earlier than anticipated – Investec

FXStreet (Barcelona) - The Investec Team comments on the yesterday’s Carney’s statement, inflation and rate hike expectations from the BOE.

Key Quotes

“Governor Carney highlighted that short term inflation could turn negative and reassured the markets the Bank of England stand ready to cut rates again or restart QE if needed - but once that caveat was done we saw a bullish report that saw labour slack estimates slashed, and inflation projections overshooting 2% in the longer term horizons, certainly indicating the Bank of England could begin to raise interest rates much earlier than markets have priced in.”