Bank of England (BoE) policymaker Megan Greene said on Tuesday that she is not convinced that the monetary policy is meaningfully restrictive in the UK, per Reuters.
Key takeaways
“Risk management around inflation needs to influence BoE policy views.”
“Household inflation expectations are at the very top of what we can explain.”
“Today’s wage data is good news as a bit lower than expected.”
“Wage settlements data for next year from surveys is higher than we would like to see.”
“I am worried about inflation persistence in UK, means monetary policy needs to be more restrictive than otherwise.”
Market reaction
These comments received a hawkish score of 8.0 from FXStreet BoE Speechtracker. Nevertheless, GBP/USD struggles to benefit and trades near 1.3120, losing about 0.4% on the day.