“Bond markets almost entirely reflect improved economic outlook rather than ominous signs,” Bank of England (BoE) policymaker Gertjan Vlieghe said on Thursday, as reported by Reuters.
Additional takeaways
“Medium-term outlook consistent with US/UK inflation targets.”
“No signs of increases in perceived tail risks of higher inflation.”
“Monetary policy will focus on medium-term outlook rather than transient factors.”
“Suspecting that medium-term inflation pressure will only emerge once slack is eroded.”
“Once the furlough scheme ends, we will have a better idea of slack in the economy.”
Market reaction
The GBP/USD pair edged higher after these comments and was last seen gaining 0.3% on the day at 1.4160.
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