BoE's Cunliffe: Difficult to assess inflation outlook in unprecedented situation
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.
Additional takeaways
"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."
Market reaction
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.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
