BoE's Haskel prefers to leave rates on hold
July 8 (Reuters) -Bank of England official Jonathan Haskel continued to strike a hawkish tone, stating that he would rather hold rates until there is more certainty that underlying inflationary pressures have subsided sustainably.
As such, despite money markets signalling that a cut from the bank is more likely than not at the August meeting, it is unlikely that Haskel will be among the voters calling for such action.
Easing priced in is largely unchanged with a 60% probability attached to an August cut 0#BOEWATCH. With said outcome likely to be met with dissent from the more hawkish members on the committee, Haskel’s comments have had a limited impact.
Instead, a similar tone from the more neutral members would likely have a greater impact on BoE pricing and thus matter more for sterling. Consequently, Chief Economist Huw Pill’s speech (Jul 10) may be more revealing for the BoE’s near-term policy outlook.
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(Justin McQueen is a Reuters market analyst. The views expressed are his own.)
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