Bank of England (BOE) policymakers that are pushing for an interest rate hike have been wrong for the past eight years and there's no sign of them getting it right now, HSBC's global head of foreign exchange strategy told CNBC on Friday.
The June meeting of the BOE's monetary policy committee resulted in a 5-3 vote in favor holding interest rates at record low levels, with Governor Mark Carney and Chief Economist Andy Haldane supporting the majority.
However, a week later and just 24 hours after Carney argued the state of the economy and ongoing Brexit uncertainty meant borrowing costs should remain unchanged; Haldane broke ranks to put himself at odds with the BOE Governor. The chief economist of Britain's central bank suggested on Wednesday that he would soon be in a position to support a rate rise.
"You get the boss speaking one day and then his chief economist the next and saying different things… it feels to the market that the chief economist – Haldane – is heading towards a rate rise. I don't know why, I don't know what they think is happening, I'm not quite sure what this is all about," David Bloom, global head of foreign exchange strategy at HSBC, told CNBC.
"They have been wrong for eight years about this and now they are going to be right? No, no, falling sterling creates inflation, inflation squeezes real incomes, consumption comes down, imports come down and the current account rectifies itself. It's amazing… financial markets can work," Bloom said.