BOE’s Greene: It’s less likely that persistent inflation will fall on its own

• It’s more likely mon pol will need to remain restrictive
• It’s appropriate to maintain a cautious and gradual approach to removing monetary stimulus
• There is a risk that the threshold for second round effects had declined
• This is likely to be the fifth consecutive year of above-target inflation
• I have advocated for a gradual path for removing mon pol restrictiveness and external communications that are clear and reflect caution

I don’t see much of a signal here but the US dollar is getting beaten up today with cable at the highs, up 66 pips to 1.2857.

More:

• Deflationary trend is probably on track
• Every meeting of the MPC will be live
• I strongly argued for the use of words ‘gradual’ and ‘careful’
• Hard to get clear signals on the direction of travel for wages
• We probably have a bit more of an output gap than in February MPR

That final comment is a dovish one.

This article was written by Adam Button at www.forexlive.com.