- Unusually large steps may validate the market narrative that it's either 'foot-to-the-floor' on the accelerator or 'foot-to-the-floor' on the brakes
- Were energy prices to fall steadily in line with futures pricing rather than to stabilize as they assume, then lower rates could be maintained
- Were we to see evidence of second round effects in wage and cost developments, a tighter policy than otherwise might be required
- We have signaled that more is to come in the coming months if the path sketched out in our February forecasts play out
- Says he's not going to give any specific view on what the yield curve should look like
- Financial markets have come to expect a lot of guidance from central banks on where rates are heading
- Reason why central banks have got inflation forecast wrong of past year is because energy prices are very hard to forecast
It's certainly not just energy that's leading to inflation and it's certainly not in just the past year that central banks have blown inflation forecasts.