BOE govCarney's testimony at the House of Lords underway 25 Oct
- mon pol as been the principal if not sole vehicle to provide stimulus
- its welcome that govt is signalling resetting of balance between mon and fiscal policy
- BOE operational independence has stood the test of time
- if independence were to be called into question then risk premium would be most prominent on ccy, gilts and inflation expectations
- BOE will not change how its conducts its mon pol unless parliament changes its remit
Earlier I reported some rather intriguing remarks from fin min Hammond about QE that made me think there were some independence issues. Seems I'm not alone,
Meanwhile GBPUSD has bounced back off strong tech lines at 1.2080 and now 1.2111 while EURGBP gave up around the 0.8980 level I highlighted here.
Is it me or does Carney just look a little tired of all that's going on. Prices on him leaving as scheduled rather than extend his contract?
