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. GBP/USD recovering from Asian lows
    Forex News

    GBP/USD recovering from Asian lows

  2. USD/JPY mellow on the back of USD sell-off
    Forex News

    USD/JPY mellow on the back of USD sell-off

  3. Dollar Cheered in Press, But Data and Fed Chatter Turning
    Forex News

    Dollar Cheered in Press, But Data and Fed Chatter Turning

  4. EUR/USD Downside Targets Favored Ahead of ECB on Slowing Inflation
    Forex News

    EUR/USD Downside Targets Favored Ahead of ECB on Slowing Inflation

  5. US Dollar Technical Analysis: Is a Pullback in the Cards?
    Forex News

    US Dollar Technical Analysis: Is a Pullback in the Cards?

Trading Center