Carney and other BOE members speak to the Treasury Select Committee
- Says he's serene about the judgements the MPC made before the referendum
- Great uncertainty followed Brexit
- Stimulus ensures sustainable inflation return
- Without stimulus unemployment would have been higher
- Reiterates that all elements of stimulus can be increased
- Says BOE must be prepared to adjust policy as necessary
- We are seeing pass-through of our policy actions
- BOE acted to stabilize near-term financial stability
Forbes:
- Impossible to predict Brexit impact on demand
- Sterling putting substantial pressure on inflation
- Easing monetary policy has costs
- May be a case for additional easing in the future
- There is time to wait and make adjustments to policy gradually
- BOE actions have had notable effect on asset prices
- Evidence of pressure in commercial real estate
- Welcomes signs of stabilization in UK economy
Cunliffe:
- Prudent to let CPI hit target over extended period
- Some data suggest Brexit impact less than feared
- Economic uncertainty is likely to endure
- I'd vote for a rate cut if economy evolves as forecast
- Expect to vote for another cut this year
- I'd vote for more stimulus is demand weaker than thought
- Expects inflation to overshoot 2% target
Vlieghe
- Brexit uncertainty weighed on domestic demand
- Brexit widened output gap and pushed unemployment higher
- Inflation set to pick up faster than forecast
All these comments hit at the same time. There is certainly an element of defensiveness about how the BOE waded into the Brexit debate before the vote and how they appear to have overstated the impacts (they weren't alone). At the same time, they're trying to take credit for the soft landing.
Otherwise, the comments skew to the dovish side with most saying they are prepared to do more.
