GBP: Inflation Report Hearings
GBP/USD is trading in a volatile fashion in the $1.6185/60 area on the Bank of England officials' comments during the Inflation Reports Hearings. All in all, teh BoE is trying to convince the public that they are in no hurry to raise rates.
-Possibility of meeting forward guidance threshold early not a trigger for raising rates.
-Forwards guidance gives UK understanding, businesses understand it, without it markets would be worrying about rising interest rates.
-Downside risks to global growth is EZ and emerging markets as they undergo further adjustment and structural reforms.
-UK income growth low, wage inflation weak, if UK growth relies solely on domestic consumption recovery will be very modest.
-We are not going to rush to tighten policy.
-The MPC wants to see sustained period of growth.