Bank of England (BoE) Deputy Governor Sarah Breeden said that the central bank is in a good place to be able to watch what’s happening in the economy, the Financial Times reported on Thursday.
Breeden added that the BoE can’t wait forever, but it doesn’t need to do it in June or July
Key quotes See a lower risk of the war in the Middle East fuelling a “nasty” spiral of rising wages and prices compared with the fallout from the Russian invasion of Ukraine. It’s much less likely to lead to second-round effects on the scale that we saw back in 2022. This is because “activity is lacklustre, the labour market is looser, monetary policy was restrictive prior to the shock, and is more restrictive now.
As such, the BoE is “in a good place to be able to watch what’s happening in the economy. We don’t need to rush to act. We’ve got time to understand firstly the size of the shocks and secondly, how the economy is evolving.