The wise money focuses on Mark Carney Speech

Today is decision day for the Bank Of England and the European Central bank.The wise money focuses on Mark Carney SpeechIt is not expected that the Bank Of England will move on interest rates or QE and it is widely expected that the BoE will sit on their hands until Mark Carney assumes the governor post in July.

Today Mark Carney has an important testimony and it will be viewed very closely for any clues to future policy direction or changes to be introduced by the BoE post July.

Carney has previously suggested a focus on nominal GDP (NGDP) would be a better indicator to help steer monetary policy, this would lend to a more aggressively dovish approach which would continue to weigh on the pound if mentioned.

Yesterday, chancellor George Osborne voiced his frustration over the Bank Of England’s apparent reluctance to pursue further monetary easing at the present stage.

This is interesting as it shows the government is backing a more aggressively dovish BoE which is the expected direction that Mark Carney will take.

We also have the European Central Bank meeting and again no changes are expected.

It will be the post meeting press conference that will grab the attention and in particular whether Mario Draghi will voice concern over recent euro appreciation.

The gains in the euro have drawn a lot of attention recently and it will be interesting to gauge the ECB’s tolerance of this after the Greek finance minister raised concern over the strength of the euro.

We have just had UK industrial production and manufacturing data come in stronger than expected which is a welcome boost for the UK and the Pound.

This is also likely to further support the current mantra from the Bank Of England to keep calm and carry on in the short term.

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