Bank of England (BoE) policymaker Megan Greene said on Wednesday that she voted to keep the bank rate on hold at the last policy meeting, citing higher risk of inflation persistence and lower risk of weak demand.
Key takeaways
“Household and business inflation expectations have been elevated for some time.”
“Recent inflation news has been in food prices, which are highly salient for expectations.”
“BoE Decision Maker panel shows firms are more sensitive to higher inflation.”
“Some signs that disinflationary process is slowing.”
“Not expecting a labour market shake out.”
Market reaction
These comments received a hawkish score of 7 from FXStreet BoE Speech Tracker. GBP/USD preserves its daily recovery momentum following these remarks and was last seen rising 0.27% on the day at 1.3430.
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