Central Banks Forex Market Intelligence News

Hunt and Bailey spoke yesterday to reaffirm BOE’s independence

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The statement on Twitter reads:

“Chancellor @Jeremy_Hunt spoke to the Governor of the @bankofengland Andrew Bailey yesterday. The Chancellor reaffirmed his commitment to the Bank’s independence and inflation target, and both agreed to work closely to restore confidence and stability in the UK economy.”

There is chatter this morning that the fiscal plan, which is set to be released on 31 October, may be delayed. That will put the BOE in quite the predicament as their forecasts and outlook will then exclude the next fiscal steps by the government. If anything, gilts will not like that too much as the central bank is forced to work with the current status quo in terms of rates pricing.