Among them Catherine Mann, an economist who is soon due to join the Bank of England's rate-setting committee, who stated on Monday that the recent inflation surge does not look like it is going to become a spiral. Jonathan Haskel, fom the Monetary Policy Committee (MPC), said that reducing stimulus was not the right move for the foreseeable future.

Yesterday’s announcement that OPEC would increase oil production may also have contributed to ease inflation fears. The cartel will boost oil production from August through December to reach 2 MMbd by year-end. The deal includes keeping remaining production cuts in place into the second half of 22.

Source: Jefferies

All eyes are focused on the spread of the Delta variant abroad and domestically, especially after all restrictions were lifted in the U.K. yesterday.

According to Reuters, Britain will threaten this week to walk away from the European Union withdrawal agreement if Brussels does not show more flexibility on Northern Ireland.

 

Things to read:

‘It’s not going to be normal by September’: investors take stock as Delta spreads (Financial Times)

Inflation Is Here — These 35 Metrics Tell You How Much to Worry (Bloomberg)