Bank of England (BoE) policymaker Megan Greene said on Tuesday that “pricing partly reflects global factors.”

Further comments

  • Not all market pricing focused on UK.
  • I am more concerned about supply side.
  • Exchange rates haven't gone as theory suggests.
  • A falling dollar would be disinflationary for UK.
  • Too early to say where the dust will settle on the US Dollar strength.
  • There is no sign of shakeout in labour market yet.
  • UK wage growth remains pretty high.
  • Services points to inflation persistence.
  • I am more worried about services inflation than wages.
  • Tariffs are more of a disinflationary risk.
  • Rise in inflation expectations worrisome.

Market reaction

Following a volatile Asian trading session on Tuesday, GBP/USD is keeping its range below 1.3400 so far, adding 0.07% on the day.

Source: Fxstreet