BoE’s Pill: Should not assume MPR forecast is a direct endorsement of market interest rate curve
Bank of England (BoE) Chief Economist Huw Pill said at an event in the London School of Economics (LSE) on Tuesday that markets “should not assume that the latest Monetary Policy Report (MPR) forecast is a direct endorsement of market interest rate curve.”
Further comments
- I do worry about upside risks to inflation in upside inflation scenario.
- I see risk of second round effects.
- I remain concerned we have seen a structural change in price and wage setting in the UK.
- Response of monetary policy to ensure we get Consumer Price Index (CPI) back to target may need to be more persistent.
Market reaction
GBP/USD holds higher ground near 1.3215 following these comments, adding 0.33% on the day.
British Pound PRICE Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.22% | -0.31% | -0.36% | 0.09% | -0.57% | -0.64% | -0.57% | |
| EUR | 0.22% | -0.09% | -0.13% | 0.30% | -0.35% | -0.40% | -0.31% | |
| GBP | 0.31% | 0.09% | -0.04% | 0.39% | -0.26% | -0.34% | -0.24% | |
| JPY | 0.36% | 0.13% | 0.04% | 0.45% | -0.21% | -0.31% | -0.17% | |
| CAD | -0.09% | -0.30% | -0.39% | -0.45% | -0.74% | -0.73% | -0.64% | |
| AUD | 0.57% | 0.35% | 0.26% | 0.21% | 0.74% | -0.06% | 0.03% | |
| NZD | 0.64% | 0.40% | 0.34% | 0.31% | 0.73% | 0.06% | 0.08% | |
| CHF | 0.57% | 0.31% | 0.24% | 0.17% | 0.64% | -0.03% | -0.08% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).