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Rate cuts preferable to QE – BOE’s Carney

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 24, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The Bank of England (BOE) governor Carney in his testimony to UK lawmakers' committee, said rate cuts are preferable to QE as a means to further ease the policy if required.

    He added that the one reason to hold rates lower is to encourage consumption and said the bank is looking at how rate increases will hit consumption.

    Key Quotes

    2% bank rate is targeted over a period of time

    Will provide room for easing in the event of the economic downturn

    Rate cuts preferable to QE

    Domestic demand is resilient in the face of fiscal tightening

    The housing market is clearly an issue for the MPC as well as FPC

    The level of household debt is still elevated

    BOE’s Haldane Key Quotes

    Credit growth is not a debt fuelled boom at this moment

    Doesn't see the housing market racing away
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