Bank of England, Andrew Bailey BOE: Inflation is likely to come down sharply in the UK, it’s very high.
The economy is stronger than expected, but wages are weakening.
What monetary policy can and should do is to make sure that the inflation that has arrived from abroad does not turn into sustained inflation at home.
As we look at the inflation outlook today, we must be aware that the full impact of the higher bank rate has yet to be felt in financial markets and the real economy.
Sometimes, changes in supply can be as sudden and as important to the inflation outlook as changes in demand.
If swelling persists, additional contraction is required.
The MPC will base its decision on evidence as it emerges.