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Mann: Not At Risk Of Over-Tightening

BOE
  • BoE’s Mann with a hawkish tone in her speech, noting that she doesn’t see a risk yet of policy over-tightening with a need to do more on raising interest rates.
  • Further, the underlying inflation dynamic looks “pretty robust”, must not let inflation expectations drift (with inflation expectations the key variable for policy) and focus more on firms’ pricing power than labour market.
  • GBPUSD hasn’t built on existing session highs (+0.6% on the day) and if anything has drifted slightly lower along with a quick step lower in e-mini S&P.

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