The cautious, steady approach to easing monetary policy is appropriate

Bank of England (BoE) policymaker Megan Greene said on Wednesday that “a cautious, steady approach to monetary easing is appropriate”.

Additional quotes

Some slack in the economy needs to be opened up for inflation to return sustainably to target over the medium term.

Indicators of inflationary persistence have generally moved in the right direction.

Suitable for taking a gradual approach to removing restrictiveness.

The cautious, steady approach to easing monetary policy is appropriate.

It will look to incoming data to provide evidence that the risk of persistent inflationary pressure is receding.

Wage growth has slowed but remains above what our suite of models can explain.

Risks to activity are to the upside, which could suggest that the long-term neutral rate is higher.

Market reaction

Sterling is failing to find inspiration from the cautious remarks from BoE policymakers, with GBP/USD shedding 0.25% on the day to trade near 1.3380 at the time of writing.