BOE governor Bailey: This was a finely balanced decision

August 01, 2024 at 12:34PM

Services price inflation and domestic inflation pressures remain elevated

There might be a slight rise in services price inflation in August, before easing for the rest of the year

Watching services prices very carefully

Should not adjust our course with every data surprise that comes in

There is still a question on whether persistent component of inflation can return to 2% sustainably

Need to make sure policy is sufficiently restrictive to return inflation to 2% target

Appropriate to adjust policy restrictiveness a little at today’s meeting

This is mainly a rehash of the statement. So, there isn’t really anything new as he continues to highlight that there are still risks to the inflation outlook. On to the Q&A now. GBP/USD is still down 0.5% on the day at 1.2785 but settling a little higher after the decision earlier.

This article was written by Justin Low at www.forexlive.com.

BOE governor Bailey: This was a finely balanced decision