13 Jun 2014
Carney wasn’t all hawkish talk - BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman noted some areas where Carney wasn’t as hawkish.
Key Quotes
"In fairness, Carney made other comments that mitigated in part his hawkishness, such as his assessment of the economic slack and the headwinds posed by sterling’s strength”.
“Recent data, including today’s construction spending report (April 1.2% vs. consensus of 1.5%) does not show the UK economy accelerating, but rather maintaining a robust expansion”.
“Nevertheless, his warning that the first hike could take place sooner than the markets had expected is being understood as the main message and likely signals that the minutes of this month’s BOE meeting (out next week) may show a more heated discussion."
Key Quotes
"In fairness, Carney made other comments that mitigated in part his hawkishness, such as his assessment of the economic slack and the headwinds posed by sterling’s strength”.
“Recent data, including today’s construction spending report (April 1.2% vs. consensus of 1.5%) does not show the UK economy accelerating, but rather maintaining a robust expansion”.
“Nevertheless, his warning that the first hike could take place sooner than the markets had expected is being understood as the main message and likely signals that the minutes of this month’s BOE meeting (out next week) may show a more heated discussion."