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17 Jul 2013
Flash: not every question was answered in the Minutes – TD Securities
FXstreet.com (London) - Research Teams at TD Securities noted that there are still some questions left unanswered.
Firstly, they said there wasn’t any forward guidance on forward guidance. “As we suspected, there was very little discussion of the forward guidance other than the fact that as mandated by the Chancellor, there will be a full assessment alongside the August Inflation Report and any announcement will come with the Inflation Report on August 7th".
Secondly, they said, on the unwelcome tightening in monetary conditions heading into the July 4th decision, the Minutes add that “The Committee agreed that it was important to communicate that the implied rise in the expected future path of Bank Rate had not been warranted by the recent developments in the domestic economy.” They explain that with no other mention in the Minutes as to whether the MPC’s decision to publish a statement in July was a precedent (given no change in policy stance), this could be interpreted as the MPC not necessarily always publishing statements every month in the future, and only publishing a statement in the case where the MPC has something particularly important to communicate. “We still expect they will continue to publish statements every month going forward, but this is still an open question after these minutes”.
Firstly, they said there wasn’t any forward guidance on forward guidance. “As we suspected, there was very little discussion of the forward guidance other than the fact that as mandated by the Chancellor, there will be a full assessment alongside the August Inflation Report and any announcement will come with the Inflation Report on August 7th".
Secondly, they said, on the unwelcome tightening in monetary conditions heading into the July 4th decision, the Minutes add that “The Committee agreed that it was important to communicate that the implied rise in the expected future path of Bank Rate had not been warranted by the recent developments in the domestic economy.” They explain that with no other mention in the Minutes as to whether the MPC’s decision to publish a statement in July was a precedent (given no change in policy stance), this could be interpreted as the MPC not necessarily always publishing statements every month in the future, and only publishing a statement in the case where the MPC has something particularly important to communicate. “We still expect they will continue to publish statements every month going forward, but this is still an open question after these minutes”.