“Incoming data suggests an increasingly stark trade-off in terms of rising and persistent inflation versus deteriorating real incomes,” the Bank of England’s chief economic officer said on Monday. Catherine Mann, according to Reuters.
Other points to consider
“The data on inflation shows an increasingly internal rootedness, persistence and drive.”
“Off-setting factors are likely to provide significant and growing support for consumer spending in the near term.”
“The domestic situation is characterized by very high inflation.”
“If the Fed tightens its monetary policy at the pace currently anticipated and the ECB is set to increase it soon, the scenarios outlined above suggest additional depreciation pressure on the British pound.”
market reaction
The GBP/USD down from session highs after these comments and was last seen posting small daily gains at 1.2245.
Source: Fx Street
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