Speaking at London School of Economics

  • UK expansion increasingly consumption led. Could point to slower growth
  • UK households appear to be entirely looking through Brexit related uncertainties
  • tensions between households view and more pessimistic markets will need to be resolved
  • Sees slower UK growth over next few years
  • Supply shocks also imply faster inflation
  • Consumption led growth tends to be slower
  • BOE faces trade-off between growth and inflation
  • action in August save jobs and output
  • signs of stronger growth outlook globally
  • BOE has little tolerance for inflation but is willing to tolerate above target inflation with limits.
  • UK has seen series of supply shocks since crisis
  • Brexit effect on sterling and the early will be somewhat uncertain over next few years, affect inflation

The full text of the speech can be found HERE. His speech is just starting LIVE HERE.

The GBPUSD initially fell modestly after his remarks, testing intraday support against the 200 bar MA on the 5- minute chart at 1.20442. The price is trading back higher at 1.2058 currently. Q&A might prompt over moves.