Comments by BOE chief economist Andy Haldane in London
- Risks to domestic prices are now broadly balanced
- UK pay growth is starting to pick up
- The limited and gradual rise in wage growth underpins the similar pace of rate hikes
- Market expectation of 25 bps per year rate increase is not dissimilar to BOE forecasts
Very typical central banker language coming out of Haldane here. Doesn’t add anything new to the monetary policy outlook for the BOE. The key takeaway here is that he reiterates that the one rate hike per year forecast remains the name of the game for the central bank as long as Brexit isn’t going to blow things up.
Cable remains at flat levels for the day after surrendering earlier gains as the dollar gathers some bids, trades now at 1.3144. EUR/GBP is a little lower on the day at 0.8737 while GBP/JPY is holding higher at 148.82.