BOE Bailey: Over 80% of UK inflation overshoot is due to energy/tradable goods

The testimony has begun in front of the treasury select committee. The GBPUSD GBP/USD The GBP/USD is the currency pair encompassing the United Kingdom’s currency, the British pound sterling (symbol £, code GBP), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one British pound. For example, when the GBP/USD is trading at 1.5000, it means 1 pound is equivalent to 1.5 dollars. The GBP/USD is the fourth most traded currency pair on the forex exchange market, giving it ample liquidity a The GBP/USD is the currency pair encompassing the United Kingdom’s currency, the British pound sterling (symbol £, code GBP), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one British pound. For example, when the GBP/USD is trading at 1.5000, it means 1 pound is equivalent to 1.5 dollars. The GBP/USD is the fourth most traded currency pair on the forex exchange market, giving it ample liquidity a Read this Term is trading at 1.2260:

Highlights from testimony:

• over 80% of UK inflation overshoot is due to energy/tradable goods
• I am not happy about inflation outlook, this is a bad situation to be in
• it is accepted practice to accommodate supply shocks 1 of they are transient and focus on a 2nd round of facts
• a key question is whether self sustained momentum and domestically generated inflation will remain even as Slack in the economy is expected to open up
• I do not think we could reasonably have done anything differently on monetary policy
• Latest Chinese data this morning was very weak longer delay between real income squeeze leading to weakness in demand and a turnaround in the labor market means more risk higher inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term expectations become embedded
• Not out of place to describe Covid impact on demand patterns in the UK as transient, unlike in the US
• Expects unemployment rate to come down from its current 3.8% range
• Labor force has been decreasing. The persistence and scale has been a surprise to us and is significant

Bank of England's a Saunders:

• my hunch is that activity will be more resilient than the MPR forecast annual report to treasury committee
• we should lean strongly against the risk of high inflation expectations