Jawboning
Bank of England Talks to the Pound
Policy makers get the currency to do their work for them.
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The Bank of England is once again threatening to tighten policy. Its words, however, should speak louder than its actions in the coming months.
On Thursday, the minutes of the bank's Monetary Policy Committee meeting this week warned that "some withdrawal of monetary stimulus was likely to be appropriate over the coming months in order to return inflation sustainably to target." Bets on a rate increase at the December meeting soared, putting the likelihood at more than 50 percent.