BOE governor Bailey: We still need to see services inflation to come down more broadly

• The disinflation process is faster than expected
• But we still need services inflation to come down more broadly
• There could be lingering persistence in wage inflation pressures beyond the forecast
• We need to see more on how the budget will affect inflation
• Do not think it is right to conclude that interest rate path will be very different due to the budget
• We have been seeing orderly market conditions
• We do not make any presumptions about policy of future Trump administration

There isn’t anything that stands out all too much from Bailey’s remarks to be fair. He’s playing a more wait and see kind of game still. So, it will really come down to what the next two inflation reports will say on 20 November and 18 December. Cable is at the highs for the day around 1.2950 but also owes to some added dollar weakness in the last half hour.

This article was written by Justin Low at www.forexlive.com.