- Following Kwarteng statement, we saw significant repricing of financial assets
- Repricing of financial assets reflects normalization after easy policy
- Repricing must be seen as part of global trend
- There is clearly a UK-specific element to repricing
- We are monitoring UK element very closely
- BOE must ensure orderly and well-functioning markets
- MPC is not indifferent to repricing of financial assets
- Repricing has a big impact on UK macro developments
- We must factor market moves into outlook for monetary policy
- Recent market developments add to challenge of inflation target
- Market developments must also be seen in context of last week's fiscal news and energy prices
- Monetary policy has limitations for fine tuning short term developments
- It's best to take a lower-frequency, more considered approach
- As we get into December, we should see inflation decelerate
- Hard not to draw conclusions that we will need significant monetary policy response
The final comment put a bid into the pound. He downplayed the need for a inter-meeting move but endorsed the idea of a larger hike. For the upcoming Nov 3 meeting, there's an 85% chance of 125 bps priced in.