Comments from the Bank of England leader
- Inflation expectations for 2-3 years out have risen less than short-term measures
- MPC judged medium-term inflation expectations still well anchored and will monitor closely
- What happens to energy prices is very uncertain, there are material risks around it
- Energy prices tend to go up and then back down again, not stay permanently high
- The longer the period of above-target inflation, the greater the chance it translates into expectations
- Our inflation framework recognizes there will be occasions when inflation will depart from target due to shocks
- Unemployment not expected to rise materially in near term but high degree of uncertainty
- I would caution against views on the scale of the increase in the bank rate that would be likely to push inflation below target
- Services price inflation is in line with historical average. The overshoot is in goods pricing
- We have not had any official labour market data that post-dates the end of the furlough scheme
- No member of the MPC, including myself gave any commitment about this meeting
- It was a very close call today
- We are in a situation where calls are close and quite hard
- We never said we would act in a particular meeting
- Ramsden: We want to draw attention to how the market rate curve has risen further recently. That would pull inflation further below target at the end of the forecast period
- Broadbent: Outlook for energy prices is key to rate decision, it makes the decision hard
- Broadbent: We saw inflation at 5% after financial crisis and it was transitory. I expect the same
- My warnings on rates were very clear but they were conditional
Energy prices 'don't tend to stay higher' if you don't include 1973-81 and 2005-2014.
This had to be one of the worst-communicated central bank decisions in years. Total clown show.
