BOE’s Haldane: Must have a ‘laser focus’ on keeping inflation expectations in check

Dhwani Mehta FXStreet

The Bank of England (BOE) must keep a close eye on the inflation expectations as the Kingdom could find it difficult to manage its debt burden after the coronavirus pandemic, Chief Economist Andy Haldane in an interview for Bloomberg’s Stephanomics podcast released Wednesday.

Key quotes

“The last thing the world needs right now is a nasty inflation surprise.”

With a brief overshoot, “we’d be super vigilant, with so much monetary stimulus and fiscal stimulus having been put in the system, that this doesn’t show up in any more medium-term measures.”

“If this year has taught us anything, it’s that we need to be super sensitive and super responsive to the data.”

“Is this more like the aftermath of a financial crisis -- slow and steady -- or is this more like the aftermath of the 1918 flu pandemic or a world war, which elicited a much faster release of pent-up demand?”

Market reaction

The GBP bulls appear unstoppable, riding higher on the Brexit deal optimism.

The cable now trades at 1.3439, adding 0.60% on a daily basis.

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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