Remarks by BOE policymaker, Gertjan Vlieghe
- Thinks it will remain appropriate to keep current stimulus in place for several quarters at least, and probably longer
- Says have not changed view that this inflation peak is likely temporary
- Says not out of the woods yet in terms of virus and impact on the economy
- Impact of further rate cut is likely to decline, though overall impact is still positive
- Would be comfortable to cut bank rate to -0.50% or -0.75% if more stimulus is required the next time
This doesn't exactly scream much of a hawkish tilt and this just means that we'll likely get more of the same from the BOE going into the August meeting next week.
With Vlieghe even talking about rate cuts in case the virus threatens the recovery process, that's not exactly what pound bulls would want to hear at the moment.
That said, don't forget that Vlieghe is leaving the BOE in August and he has been sending some mixed signals since announcing his departure, with his remarks in May being more hawkish as compared to what we're seeing above.
