BoE's Haldane: Risks to economy remain considerable and two-sided

"I stand ready to adjust monetary policy, at speed, if needed to support the economy and return inflation to its target on a sustainable basis," Andy Haldane, the Chief Economist of the Bank of England (BoE), said on Tuesday.

Additional takeaways

"Risks to the economy remain considerable and two-sided."

"Risks are, in my view, slightly more evenly balanced than in May, they remain skewed to the downside."

"More important than ever that central banks are not over-burdened and that the anchor of price stability is not disturbed."

"Upside news in demand since our previous meeting in May to have outweighed the negative news."

"Given the depth of the recession, there is likely to be a greater than usual degree of history-dependence, or hysteresis."

"Should be cautious about the conclusion that pandemics don't tend to have persistent upward pressure on prices, because of the higher non-accelerating inflation rate of unemployment (NAIRU)."

Market reaction

The GBP/USD pair edged slightly higher on these remarks and was last seen trading at 1.2270, losing 0.2% on a daily basis.