MANSION HOUSE SPEECH – GOVERNOR SIGNALS HE IS MORE OF A DOVE THAN A HAWK?

The delayed Mansion House speeches were delivered this morning by the Chancellor of the Exchequer and the Governor of the Bank of England. Governor Carney appears to think that it is too early to raise the Base Rate while there remains so much uncertainty about economic growth, the effects of Brexit and the prospects for inflation. This is in contrast with the MPC whose June meeting minutes alerted the market to the possibility of a rate rise in August. Mr Carney seems more inclined to adopt a wait and see policy.

The Chancellor Philip Hammond reiterated the importance for strong growth to deliver public services, wage growth and better living standards. So no change in policy there while he remains in charge of the Treasury.

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