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MPC member Silvana Tenreyro is still sounding very cautious about the economic recovery and the ability of the BoE to stop inflation moving higher in the short-term. She still sounds some way off hiking.

  • "That in part has been driven by global prices in energy and other commodities which push up on inflation, but these effects in general tend to be short-lived."
  • "That's a question whether this is just a big readjustment and a one-off, or whether those adjustments will keep over time, and that is part of the uncertainty that we face... Assuming this is just a one-off effect, trying to respond to that would only succeed in making inflation more volatile, since the effects of energy prices would have faded by the time policy was able to have an effect on inflation."
  • "Activity has come in weaker than we anticipated in our last forecast and we remain a normal sized recession below the pre-Covid level of GDP. If you measure relative to that we are in a full sized recession, even more if you think about the trend that we were projecting pre-Covid."
  • "It is interesting what is going on in the labour market and this is one of the biggest uncertainties that we are facing now as a committee and we need to try and work out what is going on."
  • Full comments available here.