BOE's Greene is speaking and says:
- Core and services inflation are going sideways.
- Indications are in disinflation process is slowing.
- Concerned about second-round effects of inflation
- Firms more sensitive to upside inflation surprises.
- Policy not meaningfully restrictive
- Should slow down rate cutting cycle
- Slack has opened up in the labor market making wage part of wage price spiral less likely.
- Latest rising UK unemployment is in line with what we were expecting.
- We should not cut rates every quarter, but rate cutting cycle not over.
The cautionary comments point to more steady policy with still a downside in rate bias.
