BOE’s Greene: Disinflationary process is broadly on track

• Evidence suggests to me that this weakness is more a question of constrained supply
• I believe it is appropriate to maintain a cautious and gradual approach to removing monetary stimulus
• Considerable risk recovery in productivity growth will remain elusive
• UK may now have lower threshold in which short-term inflation rise feeds through to second round effects

The pound is a touch lower on these comments and down 51 pips to 1.2392 today.

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