Flash: Thoughts on post-guidance guidance in the UK – Merrill Lynch
FXstreet.com (London) – John Wraith, strategist at Bank of America Merrill Lynch suggested, the MPC’s current forward guidance will be strictly adhered to as the Committee focuses on convincing borrowers & investors.
“In due course, however, attention will turn to how best to manage the eventual normalization of market and policy rates”.
“History shows the market’s tendency to anticipate a full hiking cycle. The MPC must communicate clearly to protect recovery”.
“Since introducing the UK’s forward guidance framework in August, which states that the MPC will keep the Bank Rate at 0.50% at least until the LFS unemployment rate falls to 7.0%, …read more