BoE's Vlieghe: No signs of increases in perceived tail risks of higher inflation

"Bond markets almost entirely reflect improved economic outlook rather than ominous signs," Bank of England (BoE) policymaker Gertjan Vlieghe said on Thursday, as reported by Reuters.

Additional takeaways

"Medium-term outlook consistent with US/UK inflation targets."

"No signs of increases in perceived tail risks of higher inflation."

"Monetary policy will focus on medium-term outlook rather than transient factors."

"Suspecting that medium-term inflation pressure will only emerge once slack is eroded."

"Once the furlough scheme ends, we will have a better idea of slack in the economy."

Market reaction

The GBP/USD pair edged higher after these comments and was last seen gaining 0.3% on the day at 1.4160.