Carney speech: MPC need to take into account any stimulus in March budget in future decisions

"We should be providing some stimulus to bring the UK economy back to the trend rate of growth," Bank of England (BoE) Governor Mark Carney said on Tuesday while testifying before the Economic Affairs Committee. "The market curve in January predicts some loosening of policy, but this would lead to inflation being a little above target."

The GBP/USD pair continued to push lower on these comments and was last seen trading at 1.2940, still up 0.2% on the day.

Key quotes

"The MPC will need to take into account any stimulus in March 11 budget in future decisions."

"Frictions from the end of Brexit transition period will hurt productivity in short term."

"Around 2 percentage points of productivity shortfall have built up during Brexit negotiations."