As Governor Andrew Bailey of the Bank of England (BOE) continues to talk at the Mansion House on Thursday, more remarks are coming in.
Additional pricing pressures may occur as a result of various shortages induced by supply and demand imbalances.
As constraints are relaxed, we foresee a shift in demand from goods to services, which should rebalance demand composition.
Rather than looking at salary growth data, we should be looking at whether and how quickly people return to work.
The current consensus is that the economy will return to its lower average underlying growth rates experienced since the financial crisis.
The reasons for believing in temporary inflation are well-founded.
It’s critical to avoid a premature tightening of monetary conditions, which could jeopardize the recovery.
As of writing, the GBP/USD is holding lower ground, flirting with weekly lows just below 1.3800./n
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