- It is reasonable to have this debate
- But own view is that to take a more cautious step
- High price of internationally traded goods has persisted for longer than anticipated
- We are seeing evidence that supply chain difficulties are easing
- But we need to see a lot more
- If there is any military action in Ukraine, that would be an upward risk for energy prices
He's outlining some risks to watch on the inflation front but in summary, the key word is persistent. Policymakers are seeing that inflationary pressures are lasting much longer than what they thought it would be and that's the main takeaway. And with UK inflation running rampant, the BOE is certainly looking to take charge to try and rein that in.
However, just be wary that monetary policy isn't quite the best tool in dealing with the current set of inflation pressures.
