BoE Governor Andrew Bailey urged in a speech that, “it is important not to over-react to temporarily strong growth and inflation, to ensure that the recovery is not undermined by a premature tightening in monetary conditions.”
Though, he admitted, “it is also important that we watch the outlook for inflation very carefully, which of course we do at all times, particularly for signs of more persistent pressure and for a move of medium term inflation expectations to a higher level.”
“And if we see those signs, we are prepared to respond with the tools of monetary policy,” he pledged.
