Bank of England Governor Andrew Bailey said on Tuesday that they have to watch very carefully for consequences of inflation, per Reuters.
Key takeaways
“Labour market is softening.”
“Path of interest rates will continue to be gradually downwards.”
“We’ve seen a steepening of the long term bond yield curve.”
“I don’t think there’s anything unusual about the UK in terms of the yield curve.”
“There will be no sustained growth without stable low inflation.”
“I don’t believe that quantitative tightening is causing steepening of yield curve.”
“Yield curve steepening partly as a response to high level of uncertainty in global economy.”
“I don’t think investors are concerned about viability of UK debt stock.”
“Internationally there is an increase in uncertainty.”
“Increase in uncertainty is coming through in terms of economic activity and growth.”
“Businesses tell me they are putting off investment decisions.”
Market reaction
These comments failed to trigger a noticeable reaction in GBP/USD. At the time of press, the pair was trading marginally higher on the day near 1.3750.