BOE's Pill: Distinctive domestic factors could make UK inflation more persistent

• Sees risks from higher natural gas prices with a tight labor market, adverse labor supply developments and goods market bottlenecks
• Domestic factors will strongly influence my monetary policy decisions in the coming months
• If imported gas prices remain significantly higher than in the past, then the threat of second-round inflation effects remain
• The persistent component of 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 is the relevant object for the MPC's attention
• Supply disruptions appear to have eased in recent months
• We are starting to see labor market indicators turn

This is hawkish stuff. The next decision is Feb 2 and the consensus is a 69% chance of a 50 bps hike with the remainder at 25 bps.

Cable is at the highs of the day at 1.2205, though much of that is broad USD weakness.