The head of monetary policy at the Bank of England (BoE), Catherine Mann, said on Monday that the gradual pace of raising bank interest rates has not sufficiently tempered expectations, as reported Reuters.
Other comments
“A rapid and forceful tightening, potentially by holding or reversing, is superior to a gradualist approach.”
“Long-term expectations metrics appear to remain anchored and consistent with the 2% target.”
“The credibility of monetary policy is intact.”
“The drift in medium-term expectations is already visible in the data.”
“We cannot be complacent about short-term rallies and medium-term drift.”
“Moving more forcefully now is to avoid relying on a deeper and longer contraction.”
“If current wholesale energy prices are allowed to trickle down to homes and businesses, there will be enormous pain for millions of people.”
“Monetary policy is a relatively blunt instrument and it is ill-equipped and not designed to deal with large relative price movements like the one we are currently seeing.”
“The rise in short- and medium-term expectations has been apparent for some time, and could herald a persistent drift to the upside.”
“This has the potential to cement expectations inconsistent with the 2% target, which would require a persistently tighter monetary policy stance.”
“We will not tolerate a persistent overshoot in inflation and we will remain vigilant even as headline rates start to decline.”
“The more we control medium-term inflation expectations now, the looser monetary policy will have to be for a long time.”
market reaction
GBP/USD showed no immediate reaction to these comments and was last seen trading flat on the day at 1.1505.
Source: Fx Street
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