BoE/Lombardelli: Inflation May Exceed Predictions

Forex - Bank of England (BoE) Deputy Governor Clare Lombardelli expressed that she is more concerned about the risk of inflation being higher than the central bank's forecasts rather than lower, and that interest rates should only be gradually reduced. In her first speech since joining the BoE in July, Lombardelli stated at a conference organized by King's Business School, "I generally see the upside and downside risk probabilities for inflation as balanced. However, at this point, I am more worried about the potential consequences that could arise if upside risks materialize, as this could require a more costly monetary policy response."