- Felt it was the time to act
- We signalled in November that we were steering toward a rate increase because of a tight labour market
- Reasons to expect labour market to tighten further
- I am concerned about headline inflation figures, but we must consider the long-term future
The Bank of England is more concerned about inflation than Omicron risks as demonstrated by their rate hike yesterday. More stress on the labour market. I reckon those business lunches costs must have risen to get everyones attention like this. Regarding the signalling from the BoE that is a bit tough to swallow. However, to be fair to Pill, he personally did say on Nov 26 'provided the jobs market continues to be strong, interest rates will need to gradually increase in the coming months; in his view, the ground has now been prepared for policy action'. A little hint of satisfaction from these comments.
GBPUSD bouncing off daily pivot point just above 1.3300
