UK inflation has proved more stubborn than expectedDomestic inflation falling at quite a slow paceUnderlying inflation not back in line yetBudget tax changes had direct impact on inflationNot seeing a revival in labour force participationLess competitive labour market than in the pastInactivity, Brexit and immigration changes could allow for larger markups on wage which might support inflationI am more comfortable now on balance of inflation risks than 6-12 months agoWe don't want to constrain banks' ability to use liquidityWe are moving toward a more repo-led systemHeadline and core inflation rates have been climbing steadily for a year and the UK services inflation rate has been stuck around 5%. But he's now "more comfortable on balance of inflation risks". Go figure...UK inflation has been much above the target since 2021 but the BoE continues to maintain a dovish reaction function, which is counterproductive in the face of rising inflation expectations. This article was written by Giuseppe Dellamotta at investinglive.com.