Shafik says that before deciding on rates she would look to see if private sector wages were rising above trend

• Wage growth is only one of a range of key indicators the BOE will view and its relationship with productivity is key
• It’s right for the BOE to not start to unwind QE until interest rates are high enough to cut if needs

Unwinding of QE can be dragged out for a very long period if needed so the economy and market can cope with it.

• Need to find the right balance between unwinding QE, maintaining price stability and deciding the appropriate level for the banks balance sheet
• Balance sheet could remain higher than recent equilibrium (they’re liking that word today)