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ECB DRAGHI & BOE FORBES SPEECH HIGHLIGHTS - EURGBP GBPUSD EURUSD

FX:EURGBP   Euro / British Pound
ECB DRAGHI:

-ECB'S DRAGHI SAYS OVERBANKING A FACTOR IN LOW LEVEL OF BANK PROFITABILITY
-ECB'S DRAGHI SAYS OVERCAPACITY MEANS SECTOR IS NOT EFFICIENT
-ECB'S DRAGHI SAYS LIFE INSURERS FACE WEAK PROFITABILITY UNLESS THEY REFORM BUSINESS MODELS
-ECB'S DRAGHI SAYS MARGIN AND HAIRCUT REQUIREMENTS COULD IMPROVE FINANCIAL STABILITY


BOE'€™S FORBES: NOT YET CONVINCED THAT ADDITIONAL MONETARY EASING WILL BE NECESSARY
-Did not support asset purchases as felt costs were greater than benefits
-Now QE announced, will not be voting against it each month, barring substantial economic change
-Behaviour of consumers and businesses, and evolution of prices is critically important in determining the appropriate action
-Initial effect on the economy of the referendum has been less stormy than many expected
-Some evidence that companies are delaying major investments; commercial property and housing market are weaker
-Consumer spending is strong and net exports are poised to pick up
-Aggregate impact of all of these forces appears to be a modest slowing in the economy to date
Comment: BOE'S FORBES: LATEST DATA POINTS TO UPGRADES IN BOE FORECASTS
- puts less weight on some of the more immediate gloomy indicators from UK
- need to be cautious in reading more positive recent data too
- Assuming recent path of data continues, it points to better BOE growth forecasts
- Prefers to adjust interest rates rather than altering QE