BoE: A more appropriate approach - Fidelity

Anna Stupnytska, Global Economist at Fidelity International, see today’s Bank of England statement showing a more balanced tone, that seems more reasonable.

Key Quotes: 

“The November MPC statement certainly struck a more balanced tone, with the Bank of England clearly dropping the easing bias introduced back in August. Governor Carney emphasised at the press conference that the BOE now has a “neutral bias” with respect to policy going forward. 
 
“The key phrase in the statement was that “monetary policy can respond, in either direction, to changes in economic outlook”. This implies that the next move in rates, or in fact the QE programme, can be either up or down, partly reflecting some limits to tolerance of the inflation overshoot. This more flexible policy approach, relative to pre-commitment to more easing, seems more reasonable in the environment of heightened uncertainty over the next few months.”