BOE's Bailey: UK inflation is unacceptably high, but expected to decrease significantly

<ul><li>The current preoccupation is inflation.</li><li>Inflation is unacceptably high.</li><li>The aim is to bring inflation down to the 2% target.</li><li>Headline inflation is expected to decrease significantly over the rest of the year.</li><li>Enhanced digitalization should not be used significantly to shift the mix of commercial bank and central bank retail money towards the latter.</li><li>The level of economic activity has not managed to grow beyond its pre-pandemic level on a consistent basis.</li><li>The UK economy has shown unexpected resilience in other ways.</li><li>Commitment to physical cash is not altered by work on retail Central Bank Digital Currency (CBDC).</li><li>Both price and wage increases at current rates are inconsistent with the inflation target.</li><li>It's crucial to see the job through.</li><li>The Monetary Policy Committee (MPC) is monitoring developments in the labour market, wage growth, and services price inflation.</li><li>The main motivation for a retail CBDC would be to ensure the public has central bank money for everyday use.</li><li>It's important to see the job through.</li><li>Bitcoin-type cryptocurrency is best seen as extremely speculative assets.</li><li>Bank resolution strategies must avoid uncertainty over what will happen to customers' money.</li></ul><p>You can read the full speech <a href="https://www.bankofengland.co.uk/-/media/boe/files/speech/2023/july/new-prospects-for-money-speech-by-andrew-bailey.pdf" target="_blank" rel="nofollow">HERE</a></p>

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