Bank of England (BoE) Chief Economist Huw Pill said on Tuesday that they have seen some more lasting changes to price and wage-setting in the UK, per Reuters.
Key takeaways
“Inactivity, Brexit and immigration changes could allow for larger markups on wages which might support inflation.”
“I am more comfortable now on balance of inflation risks than 6-12 months ago.”
“We don’t want to constrain banks’ ability to use liquidity.”
“Last week’s MPC vote on QT pace was a pragmatic approach to reducing footprint in markets.”
“Last week, I put higher weight on the need to get out of QE portfolio more quickly.”
“We have been clear we will not sell gilts into a dysfunctional market.”
Market reaction
These comments received a hawkish score of 7.0 from FXStreet BoE Speech Tracker. Nevertheless, GBP/USD’s reaction was muted and the pair was last seen trading marginally lower on the day at around 1.3500.
Read the full article here
