BoE officials voice concern over energy-driven inflation

• Bailey noted that the conflict between the US and Iran has pushed energy costs up, and further increases are possible.
• Attacks by Ukraine on Russian refining facilities are also contributing to higher energy prices, according to Bailey.
• Taylor said he considers keeping the bank rate at a moderately restrictive level as a form of insurance against external risks.
• He also stated that he remains vigilant about the risk of sustained energy price increases and their potential to affect wage and price setting.
• Taylor added that policy would need to react strongly, though there is little evidence so far.
• Greene said the length of time oil prices have remained high worries her about second-round effects.
• Ramsden described the domestic inflation situation as relatively benign.
• He noted that the global inflation outlook carries much more upside risk.
• Ramsden added that UK wage growth has been lower than anticipated prior to the conflict.

Underlying these comments is a shared view: the domestic economy is weak while external risks are increasing. Sterling (cable) rose 12 pips on the day to 1.3550 and has gained over the past hour amid a broadly weaker US dollar.