BOE's Bailey: Risks to inflation projection are broadly balanced

Author: Adam Button | Category: Central Banks

Comments from the BOE Governor:

  • 2021 GDP will recovery strongly to pre-covid levels
  • Risks to forecast are to the downside in the first year
  • There is uncertainty about the scale of slack in the UK economy
  • MPC believes that trade will be lower in H1 2020 due to Brexit
  • MPC will focus on medium-term inflation risks, not transitory risks
  • Gilt purchase slowdown isn't a change in policy
  • Broadbent: 5y5y inflation expectations are only fractionally above long-term average
  • UK has lost 2 years of output growth
  • UK GDP forecast is 'good news' for the economy
  • Broadbent: Big compositional effects and base effects will distort wage growth data in the coming months
  • Today's reduction of gilt purchases is not a tapering decision
  • Survey evidence signals consumers will spend more
So far we haven't heard anything that will move markets.

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