4 Nov 2013
Flash: BoE this week – what’s on the cards? – RBS
FXstreet.com (Barcelona) - Research teams at RBS noted that the BoE is up this week with the nagging concern is that policy stimulus measures will be left in place for too long.
Key Quotes:
“The concern is that policy stimulus measures will be left in place for too long and will ultimately prove destabilising”.
“A bounce in inflation expectations also raised a few eyebrows. There are sound empirical grounds for treating surveys of households' inflation expectations with scepticism”.
“However, inflation expectations surveys do play a useful role in providing a gauge of central bank credibility over the medium-term and constitute one of the BoE's forward guidance 'knockouts'”.
“However, the report should still have little bearing on this week's November BoE MPC meeting”.
“With no policy statement expected, we'll have to wait for the Inflation Report on 13 Nov for the details. The meeting is significant in so far as MPC forecast revisions may prompt a change to the MPC's forward guidance”.
Key Quotes:
“The concern is that policy stimulus measures will be left in place for too long and will ultimately prove destabilising”.
“A bounce in inflation expectations also raised a few eyebrows. There are sound empirical grounds for treating surveys of households' inflation expectations with scepticism”.
“However, inflation expectations surveys do play a useful role in providing a gauge of central bank credibility over the medium-term and constitute one of the BoE's forward guidance 'knockouts'”.
“However, the report should still have little bearing on this week's November BoE MPC meeting”.
“With no policy statement expected, we'll have to wait for the Inflation Report on 13 Nov for the details. The meeting is significant in so far as MPC forecast revisions may prompt a change to the MPC's forward guidance”.