GBP: Setting the stage for tighter macroprudential policy - RBS

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Guatemala) - RBS analysts noted that Governor Carney's signal that rate hikes may come earlier than the market expects is a bit at odds with the softening inflation, particularly after the MPC minutes continued to stress the importance of the inflation outlook in the calculus for timing the start of the exit.



Key Quotes:



“But the relative monetary policy case for more GBP gains against EUR is compelling. In broader, trade weighted terms, we see further near-term sterling REER gains”.



“Next week includes a variety of UK event risk, most notably the Financial Policy Committee's will release its recommendations following its June 17th meeting”.



“At the Mansion House event, Chancellor Osborne announced increased flexibility for the BoE's FPC to tackle imbalances in the housing market. That may mean new macroprudential measures are coming sooner rather than later”.



You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Forecast: Dollar Faces NFPs, Euro Anticipating Greece and Risk Languishes

  2. Forex News

    British Pound Forecast to Fall Further Across the Board

  3. Forex News

    GBP/USD bearish bias below 1.53 handle

  4. Forex News

    GBP/USD: 1.4290's to be targeted? - CB

  5. Forex News

    Key UK data snapshot - TDS

Trading Center