Bank of England (BoE) policymaker Catherine Mann said on Tuesday that they have to do a lot more work when inflation expectations drift away from the 2% target, per Reuters.
Key takeaways
“We are way above target on inflation and we have been for a long time.”
“I believe the inflation persistence scenario is playing out.”
“That does not mean I have no rate cuts on my horizon.”
“I voted for reduced QT pace because I don’t want a whole a lot of action happening in the middle of the curve.”
“I think we are closer than people think to the sloping end of the reserves demand curve.”
“I favoured the same amount of sales in each duration bucket for QT.”
Market reaction
These comments received a hawkish score of 8.2 from FXStreet BoE Speech Tracker. Meanwhile, GBP/USD was last seen trading marginally higher on the day at 1.3440.
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