BOE Bailey and Haldane comments
- we have quite and unbalanced recovery
- Hopefully that imbalance will reduce has more services markets reopen from lockdown
- Risk of high inflation expectations becoming entrenched is not our central view
- Data unemployment show corner has been turned
- There is every reason to be reasonably confident on labor market
- We have to watch inflation very carefully
- Doesn't want to be dismissive about inflation concerns
- We do see this as a story about an economy that is recovering
- We will find it easier to deal with the debt if we have higher rate of growth
BOE Haldane adds:
- Many companies concerned about cost pressures
- Expect some pass-through of course pressures this year
- Upside surprise to inflation could require policy action that could take the legs out of the recovery
- Focus should be squarely on our primary target of inflation
FYI, the BOE economist Haldane is retiring after the summer.
The GBPUSD is still trading mostly built between its 200 hour moving average of 1.41259 and 100 hour moving average of 1.41596. There was another look above the 100 hour moving average in the NY morning session, but that break failed...
