Bank of England(BoE) rate-setterMegan Greenesaid on Saturday that disinflation in the United Kingdom is set to continue despite a rise in consumer-price growth in the near term, per Bloomberg.
Key quotes
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 the 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.
Market reaction
At the press time,theGBP/USDpairis up 0.07% on the day to trade at 1.3537.
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