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“We will see a rise in inflation in the short term,”  Bank of England (BOE) Governor Andrew Bailey said at a webinar hosted by the Resolution Foundation on Monday. It will be challenging to decide if any increase in prices is likely to be persistent, Bailey further noted.

Additional takeaways

“I expect that we will have a lower profile of unemployment in next forecasts.”

“Where we are today, our task is to get inflation back to target.”

“We may need more evidence than normal that a rise in inflation is persistent.”

“Extension of furlough measures go beyond the expected end of lockdown, this is sensible.”

“Path of unemployment to be considerably smoother  than forecast in February  but this will be subject of debate.”

Market reaction

The GBP/USD pair largely ignored these remarks and was last seen trading with small daily losses at 1.3836.