4 Nov 2015
BoE coing under the spot light - TDS
FXStreet (Guatemala) - Analysts at TD Securities explained that Carney will need to balance a slightly slowing—but still improving—domestic economy against a backdrop of downgraded growth, and may elaborate on “limited and gradual” with more specificity than in the past when it comes to the press conference tomorrow after the BoE and inflation report.
Key Quotes:
"He will need to confront his statement that rate increases would “come into sharper focus” at the turn of the year."
Views on pass-through from strong GBP will be important Carney to downplay concerns on inflation and export/manufacturing sector and point to other healthy domestic data. But he could lean softly against GBP.
Carney may suggest that spare capacity is “nearly gone”, which is a signal for the market to move towards BoE hikes in about six months, while still leaving uncertainties over the ultimate pace.
Markets will already have much to chew through by the time the press conference begins. Any concerns over GBP strength will resonate, but we remain committed sterling bulls from a strategic perspective. "
Key Quotes:
"He will need to confront his statement that rate increases would “come into sharper focus” at the turn of the year."
Views on pass-through from strong GBP will be important Carney to downplay concerns on inflation and export/manufacturing sector and point to other healthy domestic data. But he could lean softly against GBP.
Carney may suggest that spare capacity is “nearly gone”, which is a signal for the market to move towards BoE hikes in about six months, while still leaving uncertainties over the ultimate pace.
Markets will already have much to chew through by the time the press conference begins. Any concerns over GBP strength will resonate, but we remain committed sterling bulls from a strategic perspective. "