Bank of England (BoE) rate-setter Megan Greene said on Saturday that disinflation in the United Kingdom is set to continue despite a rise in consumer-price growth in the near term, per Bloomberg.
Key quotes
Most of the near-term hump in inflation is due to one-off factors.
We expect inflation to continue to come down to target over the medium term.
Our view is that we can look through it, but of course that’s a big risk.
There is a risk people won’t consume even as rates come down.
Trade fragmentation should be disinflationary for the UK.
Going forward, we could see policy divergence.
Market reaction
At the press time, the GBP/USD pair is up 0.07% on the day to trade at 1.3537.
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