11 Jun 2013
Flash: BoE Carrney will not see a sea-change in monetary policy - RBS
FXstreet.com (Barcelona) - Last week's upbeat UK data suggest that the arrival of the former BoC chief now new BoE head Mr.Carrney will not see a sea-change in monetary policy this summer, says Paul Robson, RBS FX strategist.
However, Robson still feels not compelled enough to believe that the UK is set to experience a sustained recovery: "There simply isn't enough income growth, investment or borrowing going on to drive domestic demand and international demand seems simply too weak to provide a meaningful offset" Robson said, who thinks "it's more likely that the economy is bumping along the bottom."
Robson went on to add that the economy's structural problems remain severe and foresees the risk premium associated with this to eventually be priced in, although "it is a longer term theme and will need a catalyst to get the ball rolling" Robson concludes.
However, Robson still feels not compelled enough to believe that the UK is set to experience a sustained recovery: "There simply isn't enough income growth, investment or borrowing going on to drive domestic demand and international demand seems simply too weak to provide a meaningful offset" Robson said, who thinks "it's more likely that the economy is bumping along the bottom."
Robson went on to add that the economy's structural problems remain severe and foresees the risk premium associated with this to eventually be priced in, although "it is a longer term theme and will need a catalyst to get the ball rolling" Robson concludes.