Why Is the BOE Surprised About Rate Expectations?

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June 18 (Bloomberg) -- Bloomberg’s Alix Steel and Jonathan Ferro examine comments from the Bank of England about their surprise over market expectations for a rate hike. They speak in “On The Markets” on Bloomberg Television’s “In The Loop.”

Every time i wake up in new york and look at what the bank of england came out with, it is like watching a comedy.

Last week, you get mark carney out of nowhere talking about an early than it fact it rate rise.

Then they are talking about their surprise about the low probability of cash this year.

Surprised?

I said in a press conference last month with mark carney.

Why are they surprised about the low probability of cash in the market?

They speak to the guys who have put the expectation there question mark i'm shocked by the language coming out right now.

Is there disagreement?

Click there is a division in the amount of spare capacity.

I am currently confused about where this is coming from.

Maybe they are confused about financial stability.

Voicing these kinds of things, you get yields higher, and that is just the job of the bank before them.

To some extent, i'm just asking myself, where does this come from?

Why has mark carney changed in a matter of months?

I was on the phone with the former members yesterday and he was saying, there is no real wage growth.

We are seeing something similar in the u.s.. growth is up 2.1% but if you look at inflation, inflation is still up 1.2%. will seeing that buying power, that will make it tricky for the fed today.

Janet yellen has gone on and on about wage growth.

What the fed says and what the fed do has been two completed of the things.

They continue to do something else.

You will not find a single trader out there.

Because janet yellen is looking at one thing and it does not change are trying to normalize policy at the same time.

I am asking what i should be looking at.

Talk to anyone in the market what should i be looking at?

The dot plots do not matter.

Do not put them there.

You are just having me a lot annoyed.

Get rid of them.

Let's come out and saying, trading down in revision growth from the fed.

Employment rate expectations based on the fact we have seen it trickle-down to.

In quick summary, the fed forecast has intelligible -- has been terrible forever.

We believe it at that.

We are on the markets again in 30 minutes.

This text has been automatically generated. It may not be 100% accurate.

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