BoE's Ramden: Possible that relationship between slack and wages has changed
The Bank of England's Deputy Governor David Ramsden, who voted against the BoE's rate hike earlier this month, is responding to questions following his speech at King's College, in London, with key quotes, via Reuters, found below.
Thinks low long-term rates have to do with long-term growth prospects.
Possible that relationship between slack and wages has changed.
Has flagged risk of potential vulnerability in asset valuations.
EUR/GBP: bears in control, in a reversal towards 55-W MA.
EUR/GBP is testing further to the downside and moving lower below bearish hourly SMAs. EUR/GBP is trading at 0.8869, down -0.62% on the day, having posted a daily high at 0.8930 and low at 0.8857.GBP is higher from Friday’s close and has been outperforming all of the G10 currencies with the exception of NZD on Monday, climbing for a fifth consecutive session while testing fresh multi-week highs at levels last seen in early November. Meanwhile, Draghi's tone today, as expected, is a reiteration of patience and persistence, anchoring the euro.
GBP/USD retreats sharply from 2-1/2 week tops.
The GBP/USD pair trimmed some of its strong gains and retreated around 50-pips from 2-1/2 week highs touched earlier.
About BOE interest rate decision
BoE Interest Rate Decision is announced by the Bank of England. If the BoE is hawkish about the inflationary outlook of the economy and raises the interest rates it is positive, or bullish, for the GBP. Likewise, if the BoE has a dovish view on the UK economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.