BoE's Vlieghe: Bank rate shouldn't be linked to short-term growth in economy

In an interview with thebusinessdeck.com on Monday, Bank of England (BoE) policymaker Gertjan Vlieghe said that his main message is that the bank rate should not be linked to short-term growth in the economy, per Reuters.

Additional takeaways

"A couple of quarters of strong growth doesn't mean the BoE should change monetary stance or step on brakes."

"We need fast growth to close the gap versus the pre-pandemic path of the economy."

"Some strength in inflation this year is not going to be nearly enough to conclude this is an economy that doesn’t need monetary help."

"Inflation should not be seen as one-off price increases, but sustained pressure."

Market reaction

The GBP/USD pair edged modestly higher following these remarks and was last seen gaining 0.35% on a daily basis at 1.3835.