The monetary policy of the Bank of England (BoE) will focus on bringing inflation back to the medium-term target in a sustainable way, said the head of policy of the BoE, Gertjan Vlieghe, as reported by Reuters.
Additional conclusions
“This year’s growth should not be seen as a boom, but as a return to normalcy.”
“Temporary bottlenecks and base effects are likely to push UK inflation temporarily above target this year.”
“QE cannot offer a great deal of additional stimulus at a time of normal market conditions and low rates.”
“There is great uncertainty about whether absent workers will go back to work.”
“The neutral interest rate is very low relative to past decades.”
“If the UK economy is not growing very fast, significant spare capacity will open up when the licensing scheme ends.”
“Failing to pay interest rates on Boe reserves would not be consistent with the BoE’s inflation control mandate.”
“There is no compromise between the climate and the inflation target in the boe term, inflation is primary.”
Market reaction
The pair GBP/USD it climbs higher during US business hours and was last seen gaining 0.28% on the day at 1.4135.
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