• It is a challenging situation for the BOE
  • Needed to intervene because the market was not functioning properly
  • We have to get US inflation down
  • US economy has so far handled Fed tightening
  • I am a little bit above the median path reflected in September

Well, essentially one can think of the BOE acting as one of the core functions of the central bank i.e. lender of last resort (at least in some sense). The whole point here is that they needed to address solvency issues in the financial system and prevent contagion risk - which is why such drastic action was needed. The question now is, will that be enough to allow the necessary parties to settle and diversify their risk exposure in case another rout in gilts were to take place moving forward?

As for her policy comments, it isn't anything that we haven't heard of from Fed policymakers recently though her last point is leaning more towards the hawkish side.