Macro investors remain very intrigued by Mark Carney‘s arrival at the Bank of England, which could have major implications for sterling and UK equities. The minutes of the new governor’s first MPC meeting showed that the committee voted 9-0 against any immediate easing in monetary policy, but the crunch will come with the publication of the Inflation Report on 7 August. Only then will we discover whether the incomer has persuaded his colleagues to try to shock UK economic expectations towards a new equilibrium.
There was little sign of this in the minutes, which hinted that the longstanding two thirds majority against further QE has remained intact. Whether that will remain the case once the new mandate has been agreed with the Treasury is the great unknown. Read more