29 Jan 2015
No urgency needed from BoE - TDS
FXStreet (Guatemala) - Analysts at TD Securities gave a snapshot view of the UK macro climate.
Key Quotes:
"Lower oil prices will support UK domestic demand, but may also lead to a more unbalanced recovery."
"There is no market-friendly outcome to the May elections—it’s merely a trade-off for uncertainty now versus uncertainty later. A Labour-led government leaves markets questioning the impact of future tax hikes, and the risk of austerity fatigue."
"But a Conservative-led government brings the risk of the UK pulling out of the EU. With inflation remaining sub-1% through most of 2015, there is no urgency at all for the BoE to begin raising rates."
Key Quotes:
"Lower oil prices will support UK domestic demand, but may also lead to a more unbalanced recovery."
"There is no market-friendly outcome to the May elections—it’s merely a trade-off for uncertainty now versus uncertainty later. A Labour-led government leaves markets questioning the impact of future tax hikes, and the risk of austerity fatigue."
"But a Conservative-led government brings the risk of the UK pulling out of the EU. With inflation remaining sub-1% through most of 2015, there is no urgency at all for the BoE to begin raising rates."