BoE’s Pill: Need for caution points to a gradual withdrawal of policy restriction
Bank of England (BoE) Chief Economist Huw Pill said in a scheduled appearance on Friday that there is an “ample reason for caution in assessing the dissipation of inflation persistence.”
Pill added that the “need for such caution points to a gradual withdrawal of monetary policy restriction.”
Additional comments
Further cuts in bank rate remain in prospect but it will be important to guard against the risk of cutting rates either too far or too fast.
I remain concerned about the possibility of structural changes sustaining more lasting inflationary pressures.
Current wage and services price inflation are a source of continued concern.
I do not think the level of interest rates is having more than a marginal impact on UK business investment.
Market reaction
At the press time, GBP/USD is off the highs, despite the prudent comments, trading 0.21% on the day at 1.3150.
British Pound PRICE Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.07% | -0.24% | -0.37% | 0.03% | -0.04% | 0.12% | 0.02% | |
| EUR | -0.07% | -0.26% | -0.45% | -0.02% | -0.12% | 0.07% | -0.07% | |
| GBP | 0.24% | 0.26% | -0.13% | 0.27% | 0.17% | 0.35% | 0.21% | |
| JPY | 0.37% | 0.45% | 0.13% | 0.41% | 0.33% | 0.48% | 0.36% | |
| CAD | -0.03% | 0.02% | -0.27% | -0.41% | -0.09% | 0.12% | -0.06% | |
| AUD | 0.04% | 0.12% | -0.17% | -0.33% | 0.09% | 0.18% | -0.01% | |
| NZD | -0.12% | -0.07% | -0.35% | -0.48% | -0.12% | -0.18% | -0.16% | |
| CHF | -0.02% | 0.07% | -0.21% | -0.36% | 0.06% | 0.00% | 0.16% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
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.
