Bank of England chief economist Huw Pill remarks reported across the wires (Reuters citing an interview in the Uk financial press).
- UK inflation is likely to head higher, close to or above 5% early in 2022
- Says don't need emergency policy settings like after the pandemic intensified
GBP has caught a bit of (a very small) bid on the news reports:
BoE Governor Bailiey has been dropping a few well-placed hints of his interest in earlier hikes, this from the weekend just past:
- BoE Gov Bailey said despite inflation being temporary will act if a risk to medium-term inflation & expectations
- Goldman Sachs, JP Morgan & others forecast imminent BoE rate hikes
And, Reuters polling shows a marked shift in expectations: