Bank of England (BoE) Deputy Governor Dave Ramsden said on Friday that they see risks to inflation broadly balanced, as reported by Reuters.
” We are seeing a reflation trade, especially driven by the US.”
“I see market moves as a reflation trade, not an inflation trade.”
“Whatever measure you look at, UK inflation expectations are well anchored.”
“Pick-up in UK gilt yields is a corollary of more positive news in the economy, not inflation worry.”
“There will be a high bar to unwinding UK monetary easing.”
“We do keep a close eye on markets, there has been volatility in recent days.”
“Gilt market functioning is orderly as of now.”
The GBP/USD pair showed no immediate reaction to these comments and was last seen losing 0.5% on the day at 1.3945.