Bank of England (BOE) Chief Economist Huw Pill said on Friday that they still have some way to go in policy tightening, as reported by Reuters.
"Supported by the independence accorded to the MPC, we are able to take the sometimes tough decisions to bring inflation back to 2%."
"Tightening still has further to run."
"Inflation forecast to rise into double digits."
"MPC has not yet taken a decision about whether to commence gilt sales."
"If market dysfunction were to take hold, asset sales could, if necessary, be paused."
"Asset sales have the potential to tighten monetary and financial conditions; I would expect them to do so."
"Impact of gilt sales will be – indeed, already may be – ‘priced into’ financial prices, notably gilt yields."
"MPC sees an upside skew in the risks around the inflation baseline in the latter part of the forecast period."
"MPC needs to ensure that domestic price-setting does not achieve a self-sustaining, expectationally-driven momentum."
GBP/USD stays in the positive territory and trades within a touching distance of 1.2500 after these comments.
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