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UK: BoE Debate Intensifies, Both Present and Future
- The BoE comes back into the spotlight this week, both in terms of current policy and also how future policy may be shaped.
- The BoE will keep policy on hold at its meeting this Thursday, but testimony from soon-to-be Governor Carney the same day may be more interesting.
- Dr Carney may hint that he would entertain the idea of a more flexible inflation target, but admit that much would depend on economic conditions at the time he becomes Governor in June.
- It will be interesting to see if he is quizzed at the testimony about the level of the pound, i.e. would he endorse the current governor’s attempt to talk down sterling.