It is better to remain restrictive for longerWe can cut more aggressively later once inflation risk is containedThere appears to be more upside risks to inflation in the UKUK has seen more of an impact on services pricesContemplated to vote to cut rates in August but wanted to avoid “boogie-dance” on rates
She also adds that she personally has a more guarded view on starting the rate cut cycle. Adding that she agrees with the view that inflation could stay above target for an extended period. It just means she won’t be siding with a rate cut, if conditions are to remain as they are presently.
This article was written by Justin Low at www.forexlive.com.
