- Bank rate can be cut when there is sufficient evidence of a downward path in inflation persistence
- Focusing just on the next BOE meeting is a little ill advised
- We must focus on the underlying components of inflation
- But also on the persistent components, not just the headline rate
The comments are pretty much a follow up to the ones we saw from Bailey yesterday. It's been a pretty boring session for sterling, even with the beats in the UK GDP data earlier. Cable is flat at 1.2525 on the day currently.
