Carney's speech: GBP's fall to keep inflation to stay above 2% target

Mark Carney is Governor of the Bank of England and Chairman of the Monetary Policy Committee, Financial Policy Committee and the Board of the Prudential Regulation Authority. His appointment as Governor was approved by Her Majesty the Queen on 26 November 2012. The Governor joined the Bank on 1 July 2013. The market is expecting plenty of questions about Brexit and will be tuned in into hearing of any insights to the path of interest rate hikes.

Key notes:

• BoE’s Carney: Strong incentives for ‘Dynamic Equivalence’.
• BoE’s Carney: A disorderly Brexit less likely than before.
• BoE’s Carney: Inflation pass through due to FX rate shock has further to go. 
• BoE’s Carney: The labour market has continued to tighten.
• BoE’s Carney: Wages are showing a gradual firming particularly in the private sector.
• BoE’s Carney: Firming of labour and pick of wages on track..expects to see real growth income later this year.
• BoE’s Carney:  Expects to see inflation to stay above 2% target in the short term due to GBP.
• BoE’s Carney: Inflation due to the pounds fall came as expected.
• BoE’s Carney: Maybe a case to lean against effects of fall on inflation given it persists for several years.

What is the market looking for from this event?

Mark Carney is Governor of the Bank of England and Chairman of the Monetary Policy Committee, Financial Policy Committee and the Board of the Prudential Regulation Authority. His appointment as Governor was approved by Her Majesty the Queen on 26 November 2012. The Governor joined the Bank on 1 July 2013. The market is expecting plenty of questions about Brexit and will be tuned in into hearing of any insights to the path of interest rate hikes.