Bank of England's Bailey speaking at the Peterson Institute says:
- UK inflation shock has more in common to the euro zone than the US
- we are in a period of unprecedentedly large shocks
- we must ask whether series of price shocks is affecting inflation expectations
- scale of real income shock will cause a slowdown in UK growth
- question is whether UK labor market will slow down
- looking to see whether businesses intend to hoard labor
- short-term inflation expectations are increasing, this is not a surprise
- we must not be complacent about inflation expectations
- we are walking a very tight line between tackling inflation, and output effects of real income shocks
The GBPUSD is trading at 1.3040 at the start of his speaking engagement. That puts price between the 100 hour moving average at 1.30324, and the 200 hour moving average at 1.30413.