Bank of England Governor Bailey:
- Challenge we have at the moment is that we don’t know what outcome of trade situation will be
- We take gradual and careful approach as economy is hard to read
- Spend a lot of time looking at risks from market fragilities, including bonds
- Not useful to ask if dollar will remain reserve currency, may see some rebalancing but not anywhere near Dollar losing its status
- Asked about rate cuts, says there is a lot of uncertainty around at the moment
- Says UK labour market data pretty much in line with what we thought
- We're seeing strengthening in food inflation, but not alone in that
- Less volatile components of UK inflation are gradually grinding down
No one knows what the outcome of the trade situation will be.
