Bank of England (BoE) policymaker Gertjan Vlieghe said on Monday that he thinks it will remain appropriate to keep the current monetary stimulus in place for at least several quarters, as reported by Reuters.
Additional takeaways
"When tightening does become appropriate, I suspect not much of it will be needed, given the low level of the neutral rate."
"I have not changed my view that this inflation peak is likely to be temporary."
"We are not out of the woods yet in terms of the virus and the impact on the economy."
"The next time monetary stimulus is needed, I'd be fine with decreasing the bank rate to -0.5% or even -0.75%."
Market reaction
The GBP/USD pair retreated modestly from daily highs following these comments and was last seen trading at 1.3780, where it was up 0.25% on a daily basis.