Bailey speech: Our commitment to 2% inflation target is unwavering

Bank of England Governor Andrew Bailey reiterated on Friday that their commitment to the 2% inflation target is unwavering, per Reuters.

Key takeaways

"Good we have a diversity of views on the Monetary Policy Committee (MPS)."

"We will maintain a baseline projection, based on a staff proposal, one that a majority of the MPC agrees is a reasonable baseline."

"We will use scenarios as vehicles for exploring risks around the baseline and accommodating differences of views on the committee."

"Latest choice of BoE scenarios does not mean inflation risk skewed in one direction."

"Scenarios do not imply a skew for path of monetary policy."

"Behind a split vote is often a high degree of communality on the factors shaping the outlook."

"Global economic environment is likely to continue to be challenging and less predictable than it was in the past."

Market reaction

These comments failed to trigger a noticeable market reaction. At the time of press, GBP/USD was up 0.15% on the day at 1.3265.