Marc Ostwald, Strategist at ADM Investor Services International (ADMISI) presents a compelling case that would convince viewers that the Bank of England is now stuck between the rock and hard place and could end up raising the interest rates rather than hitting zero lower bound. He is joined by Tip TV’s Zak Mir and Charlie Gibson, Head of Mining at Edison Research.
Key quotes:
BOE’s Carney is also an architect of the Sterling slide
Sterling slide and the divide between BOE and the government could end up in BOE losing its independence or Carney losing his job
UK inflation breakevens have risen sharply in response to slide in Sterling suggesting rise in inflation is anticipated
BOE could end up raising rates rather than cutting it further to zero lower bound