-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI Podcasts -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
Commodities
Real-time insight of oil & gas markets
-
Credit
Credit
Real time insight of credit markets
-
Data
-
MNI Research
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
-
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessMNI: BOE McCafferty - 2 More Hikes Would Get CPI Around Target
By David Robinson
LONDON (MNI) - Bank of England Monetary Policy Committee member Ian
McCafferty said in an LBC radio interview that another two rate hikes following
the 25 basis point move at the November meeting should get inflation back to
around the 2% target.
McCafferty backed the MPC's decision not to restate at its November
Monetary Policy Summary its line that financial markets, which are pricing in
two more hikes, were underestimating the likely amount of tightening.
He pointed out that the MPC's central projection on market rates did show
inflation returning to close to target. Headline CPI was shown at 2.15% in three
years' time assuming two more 25 basis point hikes, raising Bank Rate to the 1%
level.
The MPC had stated in August and September that markets were likely
under-pricing the total amount of tightening. That line was dropped in the
November statement.
McCafferty also said that he expected commercial banks to pass on the 25
basis point rate hike to savers in the fullness of time. So far, lending rates
have been raised but banks have been more reluctant to hike saving rates.
He was one of the seven on the nine member MPC who voted for a 25 basis
point rate hike at the November meeting, having previously voted in the minority
for a rate increase at the June, August and September meetings.
--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com
[TOPICS: M$B$$$,M$E$$$,M$$BE$]
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.