The Governor of the Bank of England (BOE), Andrew Bailey, explained on Monday that the change in its language on the rate outlook last week was caused by the level of uncertainty and heightened risksas reported by Reuters.
Additional comments
“The core of the financial system is defending well the shock caused by the invasion of Ukraine.”
“Basic commodity markets are functional at the moment.”
“Liquidity conditions have deteriorated in many markets.”
“Margin costs have increased in commodity markets due to increased volatility.”
“We must see that the big change in risk perception does not cause a sharp market decline“.
“We cannot take market resilience for granted.”
“We are working closely on this at the financial stability board.”
market reaction
The GBP/USD pair remains on the defensive following these comments. At time of writing, the pair is down 0.4% on the day at 1.3135.
Source: Fx Street
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