{"id":433884,"date":"2026-07-16T15:43:04","date_gmt":"2026-07-16T08:43:04","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/boes-breeden-we-are-in-a-good-place-to-monitor-whats-happening-433884\/"},"modified":"2026-07-16T15:43:04","modified_gmt":"2026-07-16T08:43:04","slug":"boes-breeden-we-are-in-a-good-place-to-monitor-whats-happening","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/boes-breeden-we-are-in-a-good-place-to-monitor-whats-happening-433884\/","title":{"rendered":"BoE&#8217;s Breeden: We are in a &#8216;good place&#8217; to monitor what&#8217;s happening"},"content":{"rendered":"<div>\n<ul>\n<li>Absent war, inflation would be at 2% target now<\/li>\n<li>BoE \u2018in a good place\u2019 to monitor what\u2019s happening<\/li>\n<li>Iran war shock is less likely to become embedded and lead to inflationary dynamics that we might need to lean against<\/li>\n<li>There&#8217;s little reason to raise interest rates given weak economic backdrop<\/li>\n<\/ul>\n<p>Breeden said that, absent the inflationary effects of the war, UK inflation would now be at the Bank of England&#8217;s 2% target, highlighting that the latest pickup in inflation has been largely driven by external supply-side factors rather than a renewed domestic inflation pressures.<\/p>\n<p>Breeden added that the Bank is currently &#8220;in a good place&#8221; to monitor incoming developments, suggesting policymakers can afford to assess how the geopolitical shock evolves before considering any policy response. She also argued that the inflationary impulse from the conflict appears less likely to become embedded in wages, expectations, and broader pricing behavior, reducing the risk of the kind of persistent inflation dynamics that would require tighter monetary policy.<\/p>\n<p>Breeden said there is little reason to raise interest rates given the UK&#8217;s weak economic backdrop, indicating that sluggish growth remains an important consideration for policymakers. <\/p>\n<p>Her remarks reinforce the view that the BoE is likely to remain patient, with policymakers closely watching whether higher energy prices feed into broader inflation or instead prove to be a temporary headwind while the economy continues to experience subdued growth. The market is currently pricing in 27 bps of tightening by year-end, with the first rate hike coming in September at the earliest (61\ufeff% probability)<\/p>\n<p>                            This article was written by Giuseppe Dellamotta at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Absent war, inflation would be at 2% target now BoE \u2018in a good place\u2019 to monitor what\u2019s happening Iran war shock is less likely to become embedded and lead to inflationary dynamics&hellip;<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-433884","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/433884","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=433884"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/433884\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=433884"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=433884"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=433884"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}