BOE Bailey:
- Far too early to be thinking about rate cuts
- Returning inflation to 2% target remains our absolute priority
- When inflation is high, we take no chances
- The tragic events in the Middle East have added upside risk to energy prices
- Labor market remains tight despite softening recently
- Wage inflation remains elevated.
- We must be alert to any second-round effects of higher food and energy prices
- The evolution of food prices will matter for wage growth looking ahead
- The squeeze on real incomes from higher food and energy prices may still be influencing wage demands
- Inflation data for October released last week were welcome news, it’s much too early to declare victory.
- We must watch for further signs of inflation, persistence and that may require interest rates to rise again.
- How long a restrictive stance will be needed will ultimately depend on what incoming data tells us
- The MPC ‘s latest projections indicate that monetary policy is likely need to be restrictive for quite some time yet
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This article was written by Greg Michalowski at www.forexlive.com.