Jonathan Haskel, a member of the Monetary Policy Committee (MPC) of the Bank of England (BoE), argued on Monday that the immense support for the economy over the pandemic looks like it might have averted deep scarring, per Reuters.
Additional takeaways
"Anticipation of an improved future might well feed into demand today and so add to inflationary pressure."
"Much of inflation will be high temporarily due to the low base from which prices are rising."
"The economy is fully not recovered yet and faces two headwinds over the coming months."
"Risk management considerations lean against a pre-emptive tightening of monetary policy."
"For now, tight policy is not the right policy."
Market reaction
The GBP/USD pair edged lower following these comments and was last seen losing 0.47% on the day at 1.3707.