BoE FPC's announcement today doesn't imply rate hike this year - TD Securities

By FXstreet.com | June 26, 2014 AAA

FXStreet (Łódź) - Cristian Maggio, Head of Emerging Markets Research at TD Securities comments on today's BoE Financial Policy Committee announcement of new measures aimed at pre-empting risks building in the economy and ensuring more consistent risk taking limits across banks.

Key quotes



"Carney suggested the FPCs expectation is that housing market momentum continues for the next year before moderating, which implies it is doubtful they are on the verge of announcing any large, biting measures in the near-term."



"Overall, while the decision was largely in line with our expectation of measures focused on avoiding future excesses rather than raising a red flag on any current problems, and is meant to have no implications on likely monetary policy, the market has taken this as a reason to increase rate expectations 3-4bps over the next three years."



"We continue to think the BoE will disappoint pricing for a rate hike this year and still see the first hike coming in February 2015."



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