BOE: The MPC is not indifferent to the revaluation of financial assets — Huw Pill

The chief economist of the Bank of England (BOE), Huw Pill, noted on Tuesday that there was a significant appreciation in financial assets following the finance minister’s remarks, Reuters reported.

Other points to consider

“The revaluation must be seen as part of a global trend.”

“The revaluation reflects the normalization after a decade of easy politics.”

“There is clearly a UK-specific element to the repricing.”

“We are following the British component very closely.”

“A major change in asset prices is seen as repricing.”

“The BOE must guarantee the order and proper functioning of the markets.”

“The MPC is not indifferent to the revaluation of financial assets.”

“Changes in asset prices have a huge impact on UK macroeconomic developments.”

“We need to factor in market movements in the outlook for monetary policy.”

“The MPC views market developments through the prism of price stability.”

“The CPM understands very well the objective of price stability.”

“It’s hard not to jump to the conclusion that we’ll need a meaningful response of monetary policy”.

“These are difficult times to pursue the objective of the IPC.”

“Market developments should also be seen in the context of last week’s fiscal news and energy prices.”

“In my opinion, the fiscal announcement will act as a stimulus.”

“Monetary policy is best off taking a less frequent, more considered approach.”

“Monetary policy is limited in fine-tuning short-term developments.”

“In the meantime, we are confident in communication ahead of the November meeting.”

“This approach is based on respect for the independence of the BOE.”

Market Reaction

GBP/USD rose slightly from daily highs following these comments and was last seen gaining 0.6% on the day at 1.0750.