MPC dissent in August, but outliers not bellwethers - RBS

By FXstreet.com | August 15, 2014 AAA

FXStreet (Guatemala) - Analysts at RBS explained that the August Inflation Report prompted the financial markets to almost fully unwind expectations for a November 2014 Bank Rate hike.



Key Quotes:



“The front end of the curve now has rates back below their pre-Mansion House levels. This leaves market pricing more in line with our forecasts (the first 25bp hike in February 2015, with a 25bp-a-quarter pace of tightening during 2015)”.



“Still, there is probably some short-term event risk around the August MPC Minutes, where our forecast is for two dissenting votes for higher Bank Rate. More importantly, however, at this stage we would tend view any hawkish dissenters more as outliers than bellwethers for the rest of the MPC”.



comments powered by Disqus
Related Forex Analysis
  1. AUD/USD Recovery Hopes Fade With Reversal Pattern Lacking Confirmation
    Forex News

    AUD/USD Recovery Hopes Fade With Reversal Pattern Lacking Confirmation

  2. USD/JPY bulls need to take a breath before a new attack at 110.00
    Forex News

    USD/JPY bulls need to take a breath before a new attack at 110.00

  3. Crude Oil Recovers Ahead Of Inventories, Platinum Hits Multi-Year Low
    Forex News

    Crude Oil Recovers Ahead Of Inventories, Platinum Hits Multi-Year Low

  4. GBP/USD nervous below 1.6200, waiting for data
    Forex News

    GBP/USD nervous below 1.6200, waiting for data

  5. Dollar’s Current Bull Leg Strongest since Rally Through Crisis
    Forex News

    Dollar’s Current Bull Leg Strongest since Rally Through Crisis

Trading Center