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  • BoE’s Carney: BoE Has Equivalent Of 250 Basis Points Of Policy Space

Added at 4:45am

  • Carney: A Framework for All Seasons?

    From bankofengland.co.uk

    Following a chequered history of high and volatile inflation in the post-war era, the UK finally found monetary success as an early adopter of inflation targeting in 1992. The UK’s current regime, launched in 1997, delegated operational independence for setting monetary policy to the Bank of England and included many institutional innovations that have stood the test of time – most notably a Monetary Policy Committee with a mix of internal and external members; transparent, independent voting; and a clear accountability framework. Since operational independence for inflation targeting was delegated to the MPC, ... (full story)

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Yes . It doesn't mean they'll use it .

The BOE has been more fiscally prudent than other CB's globally .
Confucius: the man who broke the mountain was the same man who started ...
  •  Guest
  • | IP XX.XXX.82.241
You have to laugh at the way markets use what is generally common sense/knowledge to forward their agenda .

Ftse ramped up and the £ weakened on a common sense statement .

Of course for the BOE to use those policy tools mentioned the economy would have to deteriorate a lot further .

Counter productive
After Brexit is completed (if it does so) BoE is very likely to increase interest rates following the same path US FED has done. Let's see.
Hey buddy, let's grab some Pips!
Its curious to talk of policy scope in these terms. We expect a CB to have a reaction function which guides policy responses. If they are miles away from their desired position then what does that say about their goals?
How did you perceive his speech? Was it good or bad for GBP pairs? I can't understand when he says, "BoE Has Equivalent Of 250 Basis Points Of Policy Space"! Can you help?
Quoting hmdimn
How did you perceive his speech? Was it good or bad for GBP pairs? I can't understand when he says, "BoE Has Equivalent Of 250 Basis Points Of Policy Space"! Can you help?
I do not think you need to try too hard to understand what reaction what is being said may or may not have. You have the answer infront of you - read your chart and follow the price action. For years I got caught on the wrong side of the market by trying to anticipate how it would react. Finally I now understand - all you can do as a trader is read the chart and trade what is happening.
Quoting Stollen
{quote} I do not think you need to try too hard to understand what reaction what is being said may or may not have. You have the answer infront of you - read your chart and follow the price action. For years I got caught on the wrong side of the market by trying to anticipate how it would react. Finally I now understand - all you can do as a trader is read the chart and trade what is happening.
Finally someone said it! but it won't change anything, people on here just scram to every news report asking up or down, year after year. Most people on here are delusional.
Confucius: the man who broke the mountain was the same man who started ...
Quoting JustBreathe
{quote} Finally someone said it! but it won't change anything, people on here just scram to every news report asking up or down, year after year. Most people on here are delusional.
Because it's such news that investors use and they are the main driver of the market, the chart shows their reaction to such news, that's why we also have sentimental trading
Quoting hmdimn
How did you perceive his speech? Was it good or bad for GBP pairs? I can't understand when he says, "BoE Has Equivalent Of 250 Basis Points Of Policy Space"! Can you help?
markets are constantly changing, fundamental news article's sway in the markets is temporary. If you're fairly new to this, best thing to do is watch the markets, see how it 'breaths' and find your niche in it, focus on exploiting the shit out of it, and get consistent with that 'one trick pony'. The find another 'trick'... sorry this was for HDMIN
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Quoting Stollen
{quote} I do not think you need to try too hard to understand what reaction what is being said may or may not have. You have the answer infront of you - read your chart and follow the price action. For years I got caught on the wrong side of the market by trying to anticipate how it would react. Finally I now understand - all you can do as a trader is read the chart and trade what is happening.
trade what you see,not anticipate the charts will always say it all and the big dogs will find an excuse to prevail it.
Quoting Hovirex
{quote} Because it's such news that investors use and they are the main driver of the market, the chart shows their reaction to such news, that's why we also have sentimental trading
Forex market has many purposes. Its not a 0 sum game. Retail for the most part is speculative, there are speculative institutions as well. There are also hedgefunds who ... hedge investments, central banks that buy or sell to keep a currency withing a defined range, M&A of international companies that need to convert big money for purchases. International corporations have complex money flow structures across many countries/currencies for taxes, investments, etc. And the list goes on.

All of these factors are ALWAYS dynamic. There is no telling (precisely) what news will trigger any of these large participants to act, and in which way.

Thats why Iam amazed at people who comment here that know it all. How the hell did you factor all that in?
Charts are more telling as they show all current participants actions which is reflected in the movement of price.
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