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2 Aug 2013
Flash: BoE Carney press conference debut in focus – Deutsche Bank
FXstreet.com (New York) - There was also plenty of news to digest out of Europe yesterday including Draghi’s post-ECB comment that “current expectations of rate hikes in money markets are, according to our assessment, unwarranted”, notes Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.
Key quotes
“We believe that the Carney-like mention could have been a significant step up to pricing guidance, but he notes that this came up in the Q&A, not in the prepared statement and when offered the opportunity by a journalist to nail the point home Draghi passed on the opportunity.”
“Our interpretation is that Draghi may have been ahead of the Council on this particular signal. In general, the press conference reflected, in his view, a sense at the ECB that it can for now take a pause.” The Bank of England left policy unchanged and we’re left to wait until next week’s quarterly inflation report (Wednesday) in which Carney will give his first press conference since taking office in July.
Key quotes
“We believe that the Carney-like mention could have been a significant step up to pricing guidance, but he notes that this came up in the Q&A, not in the prepared statement and when offered the opportunity by a journalist to nail the point home Draghi passed on the opportunity.”
“Our interpretation is that Draghi may have been ahead of the Council on this particular signal. In general, the press conference reflected, in his view, a sense at the ECB that it can for now take a pause.” The Bank of England left policy unchanged and we’re left to wait until next week’s quarterly inflation report (Wednesday) in which Carney will give his first press conference since taking office in July.