On inflation
- Risk is that inflation expectations become embedded and we have a very tight labour market in the the UK.
- Guidance is more hazardous to give in times of uncertainity
- Impact of our guidance varies according to where markets are
- Boundary between commentary and guidance is quite murky
Markets are wary of Bailey after he led rates markets to expect sooner rises in interest rates before the last BoE meeting. Once bitten, twice shy. Bailey even giving his own disclaimer in the comments. Quite right too!
Also a strange comment here -
- Impact of our guidance varies according to where markets are
Seems a bit of a truism. I expect he received quite a lot of flack after the last rate meeting.
