24 Jan 2014
Flash: FT Carney headlines overstate reality - Societe Generale
FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale has offered his assessment on BOE Governor Carney's speech last night.
Key Quotes
"Mark Carney's interview last night gets a lot of attention too. The FT headline 'BOE signals scrapping forward guidance' overstates what Mr Carney said. The impression I got as that the BOE Governor wanted to stress that the unemployment rate was just one indicator to measures the health of the economy and could not be seen in isolation."
"He is giving a speech this morning, and he has already highlighted the importance of the February Inflation Report, where I think we will see not only a revision to the forward guidance on unemployment but also a broadening out of that guidance."
"Wages will probably get a mention. Indeed, for my money, it's the lack of wage pressure that is likely to exercise central bankers' minds most."
"The ability to move people, and jobs and technology around the world is having a profound impact on open economies' labour markets and there is very little pricing power in the hands of workers. The UK feels this more than most."
Key Quotes
"Mark Carney's interview last night gets a lot of attention too. The FT headline 'BOE signals scrapping forward guidance' overstates what Mr Carney said. The impression I got as that the BOE Governor wanted to stress that the unemployment rate was just one indicator to measures the health of the economy and could not be seen in isolation."
"He is giving a speech this morning, and he has already highlighted the importance of the February Inflation Report, where I think we will see not only a revision to the forward guidance on unemployment but also a broadening out of that guidance."
"Wages will probably get a mention. Indeed, for my money, it's the lack of wage pressure that is likely to exercise central bankers' minds most."
"The ability to move people, and jobs and technology around the world is having a profound impact on open economies' labour markets and there is very little pricing power in the hands of workers. The UK feels this more than most."