BoE's Mann speaking on The Results of Rising Rates: Expectations, Lags & Transmission of Monetary Policy
Hawkish vibes.
Key Points:
Failing To Do Enough On Rates Now Risks The Worst Of Both Worlds - The Higher Inflation And Lower Activity
Financial Markets Have Absorbed A Substantial Degree Of The Tightening To Date
Sequence Of Shocks And Embedding Of Inflation Risks A Troubling Change In Expectations
Financial Conditions Are Now Looser Than What Likely Will Be Needed To Moderate The Embedding Of On-Going Inflation Into The Wage- And Price-Setting Paths
Further Tightening And Sooner Rather Than Later Likely Is Needed
I Worry About Extended Persistence Of Inflation Into This Year And The Next
