Remarks by BOE governor, Andrew Bailey
- Expects rise in inflation to be a temporary feature
- A couple of reasons why inflation increase should be temporary
- That being base effects and demand-supply imbalances
- Expects a shift from goods demand to services demand as restrictions are lifted
Bailey not offering up much of any hawkish tilt here, with the key word in the headline being 'if'. And his latter remarks suggest that they don't see persistent inflation pressures as being the case going into next year.
That said, they are likely to take steps towards tapering sooner rather than later so there will be a time and place to kick start such a rhetoric.
But for now, it is so much easier to "outdove" the Fed and every other major central bank is going to play that game for as long as they can get away with it.