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14 Aug 2014
No hike expected from BoE in 2014 - TDS
FXStreet (Guatemala) - Analysts at TD Securities explained that the BoE says that they are uncertain, not clueless, but certainly sounds like no hike will come in 2014.
Key quotes:
"The August Inflation Report was resolutely dovish when it came to handicapping odds of a 2014 hike, but did suggest more conviction on broader recovery and scope to start tightening next year".
"BoE suggests spare capacity higher than expected and lowered GDP and inflation forecasts".
"We remain comfortable with our forecast for the first hike to come in February 2015, if anything the odds shift slightly later, rather than sooner, and the tone today suggests we may have had no dissent to hike in August".
Key quotes:
"The August Inflation Report was resolutely dovish when it came to handicapping odds of a 2014 hike, but did suggest more conviction on broader recovery and scope to start tightening next year".
"BoE suggests spare capacity higher than expected and lowered GDP and inflation forecasts".
"We remain comfortable with our forecast for the first hike to come in February 2015, if anything the odds shift slightly later, rather than sooner, and the tone today suggests we may have had no dissent to hike in August".