- BoE's MPC member Vlieghe: Monetary policy will focus on medium-term outlook rather than transient factors
Market news
27 May 2021
BoE's MPC member Vlieghe: Monetary policy will focus on medium-term outlook rather than transient factors
- An early rate hike is possible if there is smooth transition from furlough
- However, tightening policy too early would be a much costlier mistake than tightening too late
- Once furlough scheme ends, we will have better idea of economic slack
- It will not take years for interest rates increases to start having an effect
- It will be a communication challenge to keep reminding people that upcoming inflation is likely temporary in nature
- Bond markets almost entirely reflect improved economic outlook rather than ominous signs
- Medium-term outlook consistent with US/UK inflation targets
- No signs of increases in perceived tail risks of higher inflation
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