29 Nov 2013
Flash: BoE monetary policy – RBS
FXstreet.com (London) - RBS research at RBS said over the course of 2013 we have observed a convergence within the MPC as the 'doves' ceased to vote for extending QE purchases and the 'hawks' signalled that rate rises are not coming 'anytime soon' (Spencer Dale).
Key Quotes:
“Recent sets of MPC Minutes have become the monetary policy equivalent of a Status Quo record – the same three chords, almost indistinguishable from its predecessor”.
“The MPC has adopted a broadly neutral policy stance: having entered no-man's land policymakers are now digging-in. With a 7% unemployment rate still some way off on the horizon (Q1 2015 on our forecast, Q3 2015 on the MPC's), a period of entrenched neutrality is likely to characterise policy for much of 2014.
Key Quotes:
“Recent sets of MPC Minutes have become the monetary policy equivalent of a Status Quo record – the same three chords, almost indistinguishable from its predecessor”.
“The MPC has adopted a broadly neutral policy stance: having entered no-man's land policymakers are now digging-in. With a 7% unemployment rate still some way off on the horizon (Q1 2015 on our forecast, Q3 2015 on the MPC's), a period of entrenched neutrality is likely to characterise policy for much of 2014.