BOE’s Shafik: November rate decision will be data-dependent

More comments crossed the wires from BOE deputy governor Shafik last minutes, via MNI, as she speaks further on the BOE monetary policy outlook.

Key Quotes:

“November rate decision will depend on the data”

“If we have data that signals that stimulus is needed, we will act”

“Wage growth is key for setting policy and the most important domestic driver for inflation”

“Thinks we need to look through some of the effect of sterling”

“Sterling is playing a very important role in the path of inflation”

“Wage growth has still been quite muted”

“Would rather act pre-emptively than do too little too late”

“Part of the reason consumption is holding up is due to the rate cut”

“Forward looking indicators for investment still look quite worrying”

“Too early to say if UK will provide enough fiscal stimulus and the Treasury are still working on a fiscal response”

‘UK recovery is more likely to be U shaped than V shaped”

“BOE is watching Deutsche Bank developments closely”

“Deutsche Bank has long-term as well as transitory reasons for trading below book value”

“Do not see any direct comparison between Deutsche bank and Lehman”

“Do not think we need to go where bank of Japan has gone on shape of yield curve”

“Would never say never to negative rates, but BOE has a lot of better options”

“Would not think about reversing qe until bank rate around 2%”