BOE's Pill: BOE must ensure orderly and well-functioning markets

• Following Kwarteng statement, we saw significant repricing of financial assets
• Repricing of financial assets reflects normalization after easy policy
• Repricing must be seen as part of global trend
• There is clearly a UK-specific element to repricing
• We are monitoring UK element very closely
• BOE must ensure orderly and well-functioning markets
• MPC is not indifferent to repricing of financial assets
• Repricing has a big impact on UK macro developments
• We must factor market moves into outlook for monetary policy
• Recent market developments add to challenge of inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term target
• Market developments must also be seen in context of last week's fiscal news and energy prices
• Monetary policy has limitations for fine tuning short term developments
• It's best to take a lower-frequency, more considered approach
• As we get into December, we should see inflation decelerate
• Hard not to draw conclusions that we will need significant monetary policy response

The final comment put a bid into the pound. He downplayed the need for a inter-meeting move but endorsed the idea of a larger hike. For the upcoming Nov 3 meeting, there's an 85% chance of 125 bps priced in.