The deputy governor of the Bank of England (BoE), Dave Ramsden, said on Friday that assess the impact of the government’s growth plan on demand and inflation during the round of forecasts prior to the next monetary policy meeting, according to Reuters.
Key points
“The UK energy support package represents a very important fiscal interventionwhich can be considered a shock”.
“The impacts of the UK growth plan are likely to be important for the economic outlook over the next three yearswhich is also the relevant horizon for monetary policy”.
“The recent movements of the markets could have a Significant direct effect on November forecasts and in the committee’s broader assessment of financial conditions.”
“In general, the adjustment of market prices has been consistent with the tightening of monetary policy worldwide.”
“Some of the market appreciation continues to reflect broader global developments, but there is certainly a UK-specific component.”
“I think of the BoE Gilts buy trade as a trade designed to buy time“.
“A key consideration for the Monetary Policy Committee at its forthcoming meetings will be whether the recent appreciation in UK assets reflects a change in markets’ assessment of the UK’s macroeconomic policy mix between fiscal and monetary policy. “
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
