Credit Agricole CIB Research discusses GBP outlook in light of the appointment of Hew Pill as the new BoE Chief Economist.
"The appointment of Hew Pill as the new BoE Chief Economist was greeted by the GBP with little excitement. This is partly due to the fact that it may be difficult to place Pill – an ex-investment banker – on the MPCs dove-hawk scale...That being said, we think that Chief Economist Pill could strengthen the group at the MPC around Governor Andrew Bailey who is calling for a very cautious removal of accommodation and policy normalisation," CACIB notes.
"With the likes of the Fed and the ECB having adopted more dovish monetary policy frameworks in recent months, an important question for the BoE watchers would be whether Chief Economist Pill would want to steer the debate at the MPC in that direction as well. To the extent that this is confirmed, this could play out as a GBP negative in the FX markets," CACIB adds.