MPC posts a shock Hawkish stance on rates:

Just as Carney was dusting-off his feather quill pen to explain the recent hike in Inflation to Phillip Hammond, news broke that two further MPC members have dissented. Both Saunders and McCafferty have joined Kristin Forbes in opting for a rate hike, catching much of the square mile by surprise and pushing Sterling sharply higher.
With Inflation pressing the 3% upper limit and wages stagnating, pressure has seemingly mounted for MPC members showing the first noteworthy shock in voting for three years. Carney now has a considerable split for his party members, possibly alluding to interest rates being hiked sooner than previously thought. If Carney didn’t have enough to worry about with Brexit impacts and a lack of a cohesive government to work with, he must now be praying the UK ties up its political mess imminently and he can get back to his sole focus of recent data-softening and the UK’s Monetary Policy stance.

FTSE 100 slides as consumer spending, central bank concerns take hold

Alex Lydall quoted in MarketWatch

 

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