BOE governor testifying to the TSC still 12 July 2016
- credit demand now more important than supply
- by reducing the capital buffer at last meeting it should increase balance sheet capacity
- wants to make it as clear as possible to households and business that money is available
- post-Brexit risk that demand be will be reduced
- banks balance sheets are strong and can take on risk, need to put capital to work
That refers to the need to get money out in to the system to encourage growth. GBP enjoying another feel-good rally on attempts to stimulate growth. GBPUSD posts 1.3186 as EURGBP falls through 0..8450 and accelerates to 0.8425
Carney:
- MPC needs to consider that softer economic outlook could warrant monetary response
Repeats previous comment that further easing may be required. GBP not bothered by the statement.
