BOE Bailey: Far to early to be thinking about rate cuts

<p>BOE Bailey:</p><ul><li>Far too early to be thinking about rate cuts</li><li>Returning inflation to 2% target remains our absolute priority</li><li>When inflation is high, we take no chances</li><li>The tragic events in the Middle East have added upside risk to energy prices</li><li>Labor market remains tight despite softening recently</li><li>Wage inflation remains elevated.</li><li>We must be alert to any second-round effects of higher food and energy prices</li><li>The evolution of food prices will matter for wage growth looking ahead</li><li>The squeeze on real incomes from higher food and energy prices may still be influencing wage demands</li><li>Inflation data for October released last week were welcome news, it's much too early to declare victory.</li><li>We must watch for further signs of inflation, persistence and that may require interest rates to rise again. </li><li>How long a restrictive stance will be needed will ultimately depend on what incoming data tells us</li><li>The MPC 's latest projections indicate that monetary policy is likely need to be restrictive for quite some time yet</li></ul><p>For the full report <a href="https://www.bankofengland.co.uk/-/media/boe/files/speech/2023/november/a-measure-of-wheat-for-a-penny-speech-by-andrew-bailey.pdf" target="_blank" rel="nofollow">CLICK HERE</a>.</p>

This article was written by Greg Michalowski at www.forexlive.com.