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4 Jul 2013
Flash: MPC issues short statement – RBS
FXstreet.com (New York) - The MPC has always issued a short statement alongside any change in policy settings, notes Ross Walker, an economist at RBS.
It has also done so, on occasions, when policy settings have been unaltered – most recently in February 2013. That decision was influenced partly by the need to confirm that the MPC would reinvest the £6.6bn of maturing QE gilt redemptions but appeared to be motivated primarily by the Bank’s desire to improve its communication following Mark Carney’s ‘Guidance’ speech in December 2012. “Given the emphasis placed on communication by Mark Carney – and the fact that this appeared to trigger an MPC statement in February 2013 – it would have been rather ironic if there had been no comment today.” Walker adds.
It has also done so, on occasions, when policy settings have been unaltered – most recently in February 2013. That decision was influenced partly by the need to confirm that the MPC would reinvest the £6.6bn of maturing QE gilt redemptions but appeared to be motivated primarily by the Bank’s desire to improve its communication following Mark Carney’s ‘Guidance’ speech in December 2012. “Given the emphasis placed on communication by Mark Carney – and the fact that this appeared to trigger an MPC statement in February 2013 – it would have been rather ironic if there had been no comment today.” Walker adds.