020 7898 0500Once again, the spotlight was on Carney who was speaking in a panel discussion at the European Central Bank (ECB) Forum on Central Banking. His comments sent sterling soaring as he suggested that we might need to see the removal of BoE stimulus, and tolerance for faster inflation is limited. This indicates that we could see a rate hike should inflation continue to push higher.
The comments came after Deputy Governor Sir John Cunliffe waded into the debate by asserting now is not the right time for a rise. It must be said that this is not strictly at odds with what Carney subsequently said, but the market reacted as if it was anyway. Cunliffe stressed that he wanted to see if improvements in business investment and exports could compensate for a consumer slowdown.
Looking to the day ahead, we have the net lending figures, while the markets will no doubt take time to reassess the interest rate picture.
