BOE's Broadbent: We put a lot of weight on inflation expectations; they are showing mixed picture
Further remarks by Broadbent
Broadbent continues to keep things in the balance ahead of the next BOE policy meeting in August and that any hawkish expectations may have to be dialed back a little.
- We will not let inflation expectations become seriously unanchored
- So far, they have not been
- It is not inevitable that there will be second round inflation effects
On his final remark, he's alluding to the fact that there might be negative inflation seen in some categories around this time next year i.e. shipping costs and commodities, after the rise due to pent-up demand and economic reopening from this year.
That said, it also depends on the length of this supposed transitory period of inflation.