10 Dec 2013
Flash: Pound supported by Carney commentary - BTMU
FXstreet.com (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ notes that the pound has derived some modest support overnight from both comments from BoE Governor Carney and the release of the latest RICS survey.
Key Quotes
“In a speech to the Economics Club of New York, Governor Carney revealed that he is relatively optimistic that monetary easing undertaken by the BoE will help the economic recovery to strengthen in the years ahead while at the same time reiterating that the BoE is in no rush to raise its key policy rate.
“His views were consistent with the BoE’s optimistic real GDP forecasts presented in the latest Quarterly Inflation Report. Governor Carney stated that “with monetary policy gaining traction, there is evidence that the liquidity trap will be escaped over time”.
“On monetary policy he defended forward guidance stating that it has been “effective” in holding down short rates, while noting that macro-prudential policy measures through the FPC can be utilized to help keep rates low ahead.”
“The latest RICS survey revealed that the UK housing market has strengthened further in November with both price and sales expectations and new buyer enquiries rising to more elevated levels.”
Key Quotes
“In a speech to the Economics Club of New York, Governor Carney revealed that he is relatively optimistic that monetary easing undertaken by the BoE will help the economic recovery to strengthen in the years ahead while at the same time reiterating that the BoE is in no rush to raise its key policy rate.
“His views were consistent with the BoE’s optimistic real GDP forecasts presented in the latest Quarterly Inflation Report. Governor Carney stated that “with monetary policy gaining traction, there is evidence that the liquidity trap will be escaped over time”.
“On monetary policy he defended forward guidance stating that it has been “effective” in holding down short rates, while noting that macro-prudential policy measures through the FPC can be utilized to help keep rates low ahead.”
“The latest RICS survey revealed that the UK housing market has strengthened further in November with both price and sales expectations and new buyer enquiries rising to more elevated levels.”