Press conference from BOE Bailey
- He note the lack of headline economic news since May meeting
- does not see a spike in unemployment one furlough ski man's
- expects unemployment will be around 250K then pre-pandemic levels
- there is no evidence of job vacancies and labor market tightness
- underlying wage growth near pre-Covid levels
- inflation is marked by historical standards
- Sees inflation rate driven by higher cost of goods, energy prices and supply constraints
- MPC expects price pressures to ease
- Judging the stance of monetary policy, the committee will focus on medium-term prospects for inflation and inflation expectations; will not put focus on capacity constraints that are presumed as temporary
- the committee be will monitoring evidence of the developments in the labor markets
- should economy grow as expected, some modest tightening likely to be needed
- Bank rate is the Bank of England's main tool for altering monetary conditions
- impact of reducing the stock of BOE assets is uncertain
- impact of asset purchases greatest in dysfunctional markets
- negative rates are part of the Bank of England toolkit
- futures steady state of bank reserves will remain larger than before start of BOE asset purchases
- recovery will be bumpy
- MPC takes a risk of persistently higher inflation seriously
- Good reason to think above target inflation will be temporary
- Outlook for inflation in jeopardy,
- MPC will not hesitate to act
