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