BOE's Bailey: We are starting to see evidence of a growth slowdown

• There are risks in both directions for the outlook
• Very large trade off between inflation and output
• Appropriate to tighten policy in these circumstances
• But there are risks on both sides to inflation
• The change in language on rates outlook reflected the level of uncertainty, risks

In case you were wondering what the change in language that Bailey is referring to, we got it covered here.

As mentioned then, the BOE is looking for more flexibility and that is just reaffirmed by Bailey's constant reiteration above on two-sided risks. But for the pound and rates outlook, it's not exactly convincing that this tightening cycle can carry on unperturbed.

Inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term is still the main issue but with a cost-of-living crisis set to befall the UK, that's going to make things tough to balance for the BOE.