Bank of England (BOE) Governor Andrew Bailey is testifying alongside several Monetary Policy Committee (MPC) members on inflation and the economic outlook before Parliament's Treasury Committee on Wednesday.
Key quotes
We are seeing extreme volatility in energy markets.
I welcome fact that there will be announcements on fiscal policy this week.
Fiscal policy announcements will help frame BOE policy.
Fiscal policy announcements are also important for markets.
US is in different situation to the UK, doesn't have same trade-off.
On exchange rate, there are dollar-specific factors at work.
Fed is much more focused on bringing demand shock under control.
There is a UK story too behind the sterling weakness.
UK heavily exposed to gas prices.
Important that we have fiscal policy laid out clearly.
Market reaction
The pound is feeling the pull of gravity on the above comments, with GBP/USD trading at 1.1479, down 0.30% on the day, as of writing.
