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Sintra Panel Comment Highlights So Far:

ECB
  • Bailey asked about recent 50bps hike: "UK economy has turned out to be much more resilient [...] but what goes with resilience is signs of a tight labour market (evident in pay, unemployment rate)."
  • BoE "being driven by evidence", concluded that BoE had to make a "strong" move* Says own view is that if we were of the view that we were going to do "2x 25bps, then it was better to "do the 50bps"
  • Bailey repeats that core CPI is the issue, and is much stickier. Again flags UK labourforce as being more likely to have left the jobs market during COVID and not returned after the pandemic concluded - unlike equivalent economies across Europe and the US.
  • Ueda rebuffs question on intervention - states that this is the jurisdiction of the Ministry of Finance

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