BoE's Dhingra: Policy is already sufficiently restrictive
|The monetary policy is already "sufficiently restrictive," Bank of England (BoE) policymaker Swati Dhingra said during the Monetary Policy Hearings before the UK Treasury Select Committee on Wednesday, per Reuters.
Additional takeaways
"Domestic factors are likely to continue to ease the pressure on CPI inflation."
"Not yet evidence to suggest firms will seek to increase their margins."
"Labour market continues to ease as MPC's recent hiking cycle takes effect with a lag."
"Wage growth is one of the last outcomes to be impacted in the transmission of monetary policy to the real economy."
"A deferred pass-through of level changes to wages would not necessarily pose a risk to our target in the medium term."
"Will continue to focus on composition of wage growth, as well as headline figures for clearer sense of the outlook."
"Lagged effects of further tightening pose serious risks of output volatility in order to make a small dent on inflation."
Market reaction
GBP/USD came under renewed bearish pressure and dropped to a fresh 12-week low below 1.2530.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.