BOE: Greene doubts that a commercial war is useful for inflation

The person responsible for the policy of the Bank of England (BOE), Megan Greene, said on Wednesday that a cautious approach is probably the best approach when it comes to relaxing monetary policy. Inflationary pressures continue to cooking just below the surface of the domestic economy of the United Kingdom, which makes it difficult for the BOE to provide support to industries by reducing interest rates.

Outstanding aspects

It is less likely that the persistence of inflation fades on its own, and more likely that monetary policy must continue to be restrictive.

I think it is appropriate to maintain a cautious and gradual approach to eliminate monetary restriction.

The United Kingdom can now have a lower threshold in which the increase in short -term inflation is translated into second round effects.

The data in recent months have been uncomfortable.

A cautious and gradual approach to cuts is appropriate.

I doubt that a commercial war is useful for inflation.

Careful language suggests bidirectional risks.