BoE's Greene
Comments from Bank of England rate-setter Megan Greene:
- Most of the near-term hump in inflation is due to one-off factors
- We expect inflation to continue to come down to target over medium term
- Our view is that we can look through it but of course that's a big risk
- There is a risk people won't consume even as rates come down
- Trade fragmentation should be disinflationary for the UK
- Going forward we could see policy divergence
I'd love to know more on why she thinks global fragmentation on trade -- or deglobalization -- will be disinflationary for the UK when intuitively it's the opposite. In any case, she's certainly dovish here. The market is pricing in 38 bps in BOE easing this year.
