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“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.