Bank of England (BoE) Deputy Governor Dave Ramsden said on Tuesday that the UK economy has so far proved resilient, notwithstanding the scarring effects of COVID and Brexit, as reported by Reuters.
Additional takeaways
"A central question for the outlook is whether the UK economy can build on the resilience shown to date and continue to expand in the face of the ongoing effects of energy prices and other shocks."
"Unlike earlier inflationary episodes, where we saw more persistence in inflation caused by ineffective policy and policy frameworks, this time we have a framework which empowers us to take action."
"Uncertainty makes it particularly difficult to make predictions about where monetary policy might be headed in the medium term."
"In the near term, some further tightening seems likely to be needed, to prevent current high inflation becoming embedded in wage and price settings."
"There are also downside risks to inflation ahead, risks from tightening monetary policy too much."
Market reaction
GBP/USD stays on the back foot following these comments and was last seen losing 0.15% on the day at 1.3575.