Flash: BoEs inaction a source of action – Investec

FXstreet.com (New York) - The Bank of England (BoE) took some Canadian influence yesterday by releasing an accompanying statement with the decision not to change policy by the MPC, notes Lee McDarby, Corporate Treasury at Investec.

By any measure, this is a big move by Dr. Carney introducing statements akin to those made by the Bank of Canada during his tenure and proves that he is by no means afraid of rocking the boat. It also adds a greater level of transparency and means that the Monetary Policy Committee has to provide a sneak preview of their cards ahead of the traditional release of the minutes. However, “although this is ultimately a good thing for the Central Bank the dovish statement sent the pound tumbling as we also saw sharp falls in gilt yields.” McDarby adds.