Bank of England's Martin Weale speaks in London 21 May 2015
- Impact of oil price fall will fade by early 2017
- Nearly all of expected boost to UK growth from lower oil price is still to come
- MPC should look through short-term shocks to UK economy and focus on two year horizon
- Reacting to shock would mean unwanted output fluctuation
The known Bank of England hawk manages to hit both sides of the fence in the warning on CPI, and then looking through it. The comment that there's more to come from the economy from lower prices is pretty valid but there's also the danger of people getting to used to low prices and thus feeling a harder hit when rates go up