BOE governor Bailey: This was a finely balanced decision

  • Services price inflation and domestic inflation pressures remain elevated
  • There might be a slight rise in services price inflation in August, before easing for the rest of the year
  • Watching services prices very carefully
  • Should not adjust our course with every data surprise that comes in
  • There is still a question on whether persistent component of inflation can return to 2% sustainably
  • Need to make sure policy is sufficiently restrictive to return inflation to 2% target
  • Appropriate to adjust policy restrictiveness a little at today’s meeting

This is mainly a rehash of the statement. So, there isn’t really anything new as he continues to highlight that there are still risks to the inflation outlook. On to the Q&A now. GBP/USD is still down 0.5% on the day at 1.2785 but settling a little higher after the decision earlier.

This article was written by Justin Low at www.forexlive.com. Source