• Bank rate can be cut when there is sufficient evidence of a downward path in inflation persistence
• Focusing just on the next BOE meeting is a little ill advised
• We must focus on the underlying components of inflation
• But also on the persistent components, not just the headline rate

The comments are pretty much a follow up to the ones we saw from Bailey yesterday. It’s been a pretty boring session for sterling, even with the beats in the UK GDP data earlier. Cable is flat at 1.2525 on the day currently.

This article was written by Justin Low at www.forexlive.com.