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11 Jun 2014
GBP limited due to wage growth remaining weak - RBS
FXStreet (Guatemala) - RBS strategists noted the mixed data from the UK, which all in all supported a stringer case for the pound.
Key Quotes:
“April labour data in the UK showed stronger than expected headline job gains and a new recovery low for the unemployment rate, but wage growth remained quite weak.”
“While some members see the monetary policy decision as becoming more balanced, Governor Carney speaks tomorrow at the Mansion House dinner and is likely to maintain a fairly dovish outlook. Like Ben Broadbent in his testimony today, look for BoE Governor Carney to cite the weakness in wage growth to argue that slack in the labour market remains substantial”.
“A discussion of household imbalances will likely result in the Governor repeating that monetary is the last line of defense to combat financial stability issues”.
Key Quotes:
“April labour data in the UK showed stronger than expected headline job gains and a new recovery low for the unemployment rate, but wage growth remained quite weak.”
“While some members see the monetary policy decision as becoming more balanced, Governor Carney speaks tomorrow at the Mansion House dinner and is likely to maintain a fairly dovish outlook. Like Ben Broadbent in his testimony today, look for BoE Governor Carney to cite the weakness in wage growth to argue that slack in the labour market remains substantial”.
“A discussion of household imbalances will likely result in the Governor repeating that monetary is the last line of defense to combat financial stability issues”.