In an interview with CNBC on Friday, the Bank of England Chief Economist Huw Pill, said internally generated inflationary pressures are likely to be more persistent. When asked about more rate hikes, he said “I think that’s true,” according to Reuters.
Featured statements
“To ensure the credibility of our inflation target, we felt the time to act had come.”
“We signaled in November that we were heading for a rate hike due to the tight labor market.”
“The data we have seen has confirmed that the labor market is tighter than we expected in November.”
“Ómicron has introduced a new level of uncertainty.”
“We have to proceed with caution.”
“We have to see if Ómicron leads to some reversal in the strength of the labor market.”
“We see evidence of a slowdown, particularly in the consumer-oriented sector“.
“Ómicron may weigh on activity in the short term, but we must be cautious in assuming that it will be disinflationary in the medium term.”
“The Internally generated inflationary pressures must be contained.”
“I am very uncomfortable with the inflation figures, but we have to look at the long term.”
“We are very concerned about how our measures announced yesterday and what could be in the future carry through the economy.”
“We haven’t used interest rate hikes for a long time.”
“Bond yields should increase as growth expectations recover.”
“I don’t think the magnitude of yesterday’s rate hike is transformative for the housing market.”
Market reaction
GBP / USD did not show any immediate reaction to these comments and was last seen trading flat on the day near 1.3320.
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