- Limited economic reaction to tariffs partly reflects expectations of looser BOE policy
- Should not neglect longer-term upward pressures on inflation from wages
- “Careful” rate cuts should be understood to represent being alert, agile to economic changes
- There is still some way to go on disinflation
This is a rather soft defense of his position to not want to cut rates in yesterday’s vote. But as mentioned then, the BOE system does shed more transparency on the same discussion that all central banks are facing right now. If even the UK is seeing such a debate, what more other major central banks like the Fed and ECB.
This article was written by Justin Low at www.forexlive.com.
