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12 Nov 2014
Sterling down on AUD, NZD and USD - ANZ
FXStreet (Guatemala) - Analysts, Amber Rabinov & Brian Martin, at ANZ noted the conditions surrounding the BoE Inflation Report earlier today in London.
"The BoE was unambiguously more dovish in its November Quarterly Inflation Report. There was a notable downgrade in the bank’s inflation forecast and softening in the outlook for GDP growth".
"Wages are responding to the employment gains of the past year or so as spare capacity shrinks. In part due to its weaker inflation outlook, the BoE looks for real annual earnings growth of around 2% by the end of 2015".
"In such a subdued environment for inflation, it is difficult for the BoE to justify a normalisation in policy rates in the near term".
"Prospects for a H1 2015 rise in the bank rate have been reduced. This is negative for sterling near term and will act as a constraint on GBP vs USD, AUD and NZD".
"The BoE was unambiguously more dovish in its November Quarterly Inflation Report. There was a notable downgrade in the bank’s inflation forecast and softening in the outlook for GDP growth".
"Wages are responding to the employment gains of the past year or so as spare capacity shrinks. In part due to its weaker inflation outlook, the BoE looks for real annual earnings growth of around 2% by the end of 2015".
"In such a subdued environment for inflation, it is difficult for the BoE to justify a normalisation in policy rates in the near term".
"Prospects for a H1 2015 rise in the bank rate have been reduced. This is negative for sterling near term and will act as a constraint on GBP vs USD, AUD and NZD".