Salient to Investors:

Deanne Julius said the UK has reached the escape velocity that BoE Governor Mark Carney said economies need to achieve, and no additional monetary stimulus is warranted.

John Gieve said the UK economy has turned a corner after growth accelerated to 0.6 percent in Q2, but is some way from materially changing monetary policy. Gieve said most recessions involve a period of above-trend growth, and there’s a reasonable probability we see that now. Gieve said the BoE will hook monetary-policy to some type of economic data, avoiding data that’s revised massively and that he can hit quickly: probably unemployment or possibly real incomes.

Charles Goodhart said the UK economy has reached escape velocity and may be recovering faster than people expect partly because business investment will begin to kick in. Goodhart said forward guidance will be difficult for the 9-member committee to adapt to but while it does not matter very much for the British economy, it does for the MPC, because it will constrain the MPC’s own procedures.

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