Does surprise growth signal a done deal in next week’s MPC meeting?
The Governor of the Bank of England will breathe a sigh of relief this morning as the prelim quarterly UK GDP estimate surprised markets to the upside and signalled growth in Q3 of this year (0.4% vs 0.3%).
Markets were left bemused in Tuesday’s session after the Central Banks deputy governor Jon Cunliffe appeared to be angling for more time on hiking rates as the timing debate was still an “open question”. As market participants assume a rate hike in next week’s MPC meeting as a done deal, the Bank of England runs the risk of eroding its credibility further with mixed messages currently emanating from its various policymakers if it doesn’t hike this year; over to you Governor.
Anthony Kurukgy’s comments on the UK GDP print; quoted in MarketWatch