BOE's Vlieghe: Bottlenecks and base effects will push inflation temporarily higher
Comments from Vlieghe on a panel:
- Growth this year should not be viewed as a boom but a return to normal
- QE cannot deliver a great amount of extra stimulus at a time of normal conditions and low rates but can be very powerful in times of disruption
- BOE will add negative rates to the toolkit starting in August
The BOE has been working on negative rates for some time and it's long been known they would be part of the toolkit.
Cable continues to slowly etch out new highs and is up 33 pips on the day to 1.4130.