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Nice Start, Mark

Sterling down 1%, a shade under 1% up on the equity markets.  And it’s only his fourth day!   (I’d love to see how the breakevens moved.)

FT Alphaville have the charts.

I’m sure much will be made of Carney’s choice of tie colour vote in this meeting, but it is totally irrelevant – in fact I’d be surprised if he voted to extend QE.  The MPC just eased UK monetary policy without extending QE.  We see time and time again that it is perceptions of the central bank’s own definition of “responsible monetary policy” which matter to expectations – this is why words are a central banker’s most powerful “tool”, contra Tim Duy.

(Sorry, I only managed to stay away for a single month.)

Categories: Monetary Policy
  1. James in London
    July 4, 2013 at 19:35

    A great day indeed. May we have many more like it. And he even seems to have had a word with Mario.

    • July 4, 2013 at 23:14

      I wasn’t expecting anything until August, were you? And the MPC agreed to that statement about the future path of Bank Rate?! That’s a real coup.

      • James in London
        July 5, 2013 at 07:27

        No. But Carney has a reputation of not hanging about, by all accounts.

        And the MPC are as spineless as expected. I think they should resign given their fairly noisy posturing about not being bullied by the new Governor into more easing has been shown to be just empty threats. But that’s a minor complaint.

        Next stop NGDP LT and the end of discretion, and the abolition of the MPC altogether.

  2. W. Peden
    July 5, 2013 at 10:39

    Great to have you back!

    And you’re the bearer of other good news as well. :)

  1. July 5, 2013 at 14:06
  2. July 17, 2013 at 14:01

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