BOE’s Broadbent: The appropriate response to inflation may be nothing
|Commenting on inflation and the economy, the Bank of England (BOE) Deputy Governor Ben Broadbent said on Thursday, “the appropriate response to inflation may be nothing.”
Additional quotes
“High inflation rate likely to subside, sees good cases.”
“Inflation rise is temporary.”
“The extent of the rise in inflation has been surprising.
“Have to pay very close attention, parsing official data as best as it can.”
“That includes numbers in the labor market.”
“Quite a bit of the current rise in inflation is actually coming directly from the higher price of oil, something that is likely to fall away through the early part of 2022.”
“Not convinced that current inflation in retail good prices should mean higher inflation in 18-24 months ahead.”
“That is the horizon more relevant for monetary policy.”
“Good case that the UK supply-side problems will be temporary.”
“Behaviour of labor costs will for me be important in judging the appropriate stance for monetary policy, this won’t be straightforward.”
GBP/USD reaction
On Broadbent’s comments, GBP/USD found fresh bids near 1.3720, as it bounced back towards 1.3750.
The spot is now seen trading at 1.3742, up 0.22% on the day.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.