“I am still inclined to believe that a significant monetary policy response will be necessary in November,” he said on Wednesday. the chief economist of the Bank of England, Huw Pill, as reported by Reuters.
Other points to consider
“I’ll see when we get to November how things have developed in the meantime.”
“Employment has stagnated and is now showing tentative signs of falling.”
“This will help cool down the labor market and contain some of the inflationary pressures from domestic sources.”
“The sustained and reassuring downward trend in market inflation expectations that emerged from early April appears to have come to an end.”
“The impact of government relief for the corporate sector on consumer prices is more difficult to assess.”
“The fiscal announcements will, in aggregate, provide a further stimulus to demand relative to supply over the medium-term horizon, relevant for monetary policy.”
“This will add to the inflationary pressure coming from the energy price guarantee.”
“The volatility in the markets following the announcement of the growth plan underscores the need to bolster the credibility of the broader institutional framework.”
Market reaction
The GBP/USD pair showed no immediate reaction to these comments and was last seen up 1% on the day at 1.1075.
Source: Fx Street
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