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Carney likely to repeat that first hike is data dependent - TD Securities

FXStreet (Łódź) - BoE governor Mark Carney is due to speak later today but is not expected to hint at a possible rate hike in 2014, as Prashant Newnaha, Asia-Pacific Macro Strategist at TD Securities suggests.

Key quotes

"This speech is absolutely not without its risks, as it could be used by Carney either to suggest that November is still on the table, which could see a sharp repricing in the market given where it has settled, or to more firmly suggest that the risk of a hike in 2014 is more limited than was seen in the past, which would be in keeping with the MPC’s September Minutes."

"But overall, we think it is more likely he sticks to a message that the first hike is data dependent, colouring that with more of the downside risks that were in the previous Minutes."

"Governor Carney has generally only used his solo speeches to shock the market when he sees market pricing deviate from the trend in the data, and this is something we have not seen in our opinion."

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