BOE Bailey:

  • Far too early to be thinking about rate cuts
  • Returning inflation to 2% target remains our absolute priority
  • When inflation is high, we take no chances
  • The tragic events in the Middle East have added upside risk to energy prices
  • Labor market remains tight despite softening recently
  • Wage inflation remains elevated.
  • We must be alert to any second-round effects of higher food and energy prices
  • The evolution of food prices will matter for wage growth looking ahead
  • The squeeze on real incomes from higher food and energy prices may still be influencing wage demands
  • Inflation data for October released last week were welcome news, it's much too early to declare victory.
  • We must watch for further signs of inflation, persistence and that may require interest rates to rise again.
  • How long a restrictive stance will be needed will ultimately depend on what incoming data tells us
  • The MPC 's latest projections indicate that monetary policy is likely need to be restrictive for quite some time yet

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