BOE’s Hogg: Forward guidance needs to cover QE exit statements

BOE MPC Newest board member Hogg is on the wires now, via Reuters, speaking at her appointment hearing with the Treasury Select Committee.

In mid-Feb the Times tipped her as a potential replacement for Carney when his term ends in 2019.

Key Headlines:

I would have no tolerance for a less than credible path back to target, from either above or below target

There may be upside risks to business investment as new trading arrangements with EU become clearer

Household and market based inflation measures are more elevated than usual for the near term

Group think isn't alive and well at the BOE

There are risks of sudden changes in consumption

Would look at commercial real estate if the BOE needed more macroprudential tools in the future

Ready to challenge the governor publicly

When BOE reduces size of asset purchase facility, balance sheet is unlikely to return to pre-crisis level

Has disagreed previously with Carney as COO over staff issues and organisation

Forward guidance needs to cover things like BOE statements on how to exit QE

Low rates are a global phenomenon

Structural elements to low interest rates