BOE's Carney: Some monetary policy stimulus likely to be needed over summer

30 June 2016, 17:29
Sherif Hasan
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BOE's Carney impromptu speech

  • Economic outlook worse
  • MPC will make initial assessment at July 14th meeting and make a decision at August meeting
  • Uncomfortable truth that the BOE cannot fully offset a large economic shock from leaving the EU 
  • BOE will hold ILTR repo operations weekly rather than monthly
  • If interest rates go too low the hit to bank profitability could reduce credit availability

That last comment suggests that extra QE, rather than a rate cut is on the cards

So they'll talk in July and make a decision in August, which will be when we get the inflation report.

Cable spilled naturally to 1.3295 but is back at 1.3325. He's painting a very worrying picture.


Ready to strike

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