Bank of England Deputy Governor Jon Cunliffe said on Wednesday that they need to understand the context for high inflation as the economy reopens, as reported by Reuters.
"The key question about inflation is whether demand surge and supply chain problems are persistent."
"We will try to get a better read of supply and demand for august forecasts."
"It's more difficult to assess the outlook for inflation in this unprecedented situation."
"It's more difficult to stimulate the economy with rates near lower bound."
"We need to see if higher inflation is something persistent which we would need to act against."
These comments were largely ignored by market participants and the GBP/USD pair was last seen gaining 0.3% on the day at 1.3850.
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