BoE’s Bailey: Inflation has turned the corner

Dhwani Mehta FXStreet

Bank of England (BoE) Governor Andrew Bailey faces questions by the UK parliament's Treasury Select Committee (TSC) about the central bank's May Monetary Policy Report.

Key quotes

Inflation has turned the corner.

Services inflation is tracking more or less as we thought in Feb.

MPC will adjust bank rate as necessary to return inflation to target sustainably in the medium term.

If evidence of more persistent pressures, then further tightening in monetary policy would be required.

There are some signs that the labour market is loosening a little.

We have underestimated food price inflation.

There are lessons about how we deal with monetary policy in the face of very big shocks.

We have to make policy in real time.

We have got to get on top of this and bring inflation back down to target.

Market reaction

Bailey’s words fail to move the needle around the Pound Sterling, with GBP/USD currently trading at 1.2394, down 0.35% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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