UK: All eyes on MPC member Martin Weale’s speech - TDS

Research Team at TDS, suggests that the UK external MPC member Martin Weale speaks about the impact of Brexit on monetary policy.

Key Quotes 

“Weale is likely to sound relatively hawkish, and was likely the pushback referred to in Thursday’s MPC summary, where it was noted that “most” (but not all) members felt that monetary policy would be eased in August.

As an evidence-driven decision maker, Weale will likely make the case in his speech that he wants to wait for more data before deciding how the MPC should respond to Brexit, but note that his stint as an external MPC member ends the week after the August policy decision.  While hawkish rhetoric should be taken in stride (he was the only MPC member to oppose forward guidance in 2013) a dovish shift could lead markets to price in more aggressive easing in August if that implies other MPC hawks are turning into doves.”