After the recent central bank action from the Fed, SNB, and BoE this week, the Bank of England's (BoE) Pill has been hitting the news wires this morning. The British central banker said " financial markets will have to make their own judgment upon whether the BoE is considering a 50 bps hike" at the next meeting.
He went on to say the BoE is trying to signal that it may need to act further. This has been priced into the market but there is some contention about how far the Bank of England is willing to go. Especially as they have projected an 11% inflation rate.
On this subject Pill went on to say "price pressures becoming embedded will be a trigger for more aggressive BoE action" but then cautioned his tone to say if the bank act too aggressively the BoE would cause an undesirable slowdown.
Looking at the 30-min chart, there was some volatility after the comments from Pill but it was broadly contained in the current price waves of the GBP/USD pair.
