BOE governor now begins testimony to parliamentary TSC 21 Feb
- except in exceptional circumstances
- generally uses a "conditioning path"
- path at Nov report was 2 hikes, now almost 3
GBP suitably unfazed at the moment.
- we are not in exceptional circumstances now
- horizon to bring inflation back to target has moved in from 3 years but not yet 2 years in MPC's collective view
- further stimulus withdrawal needed in coming years
Haldane:
- reasons for more hawkish view now is stronger world economy ans somewhat in UK too
- last year has seen stronger than expected momentum
Broadbent:
- degree of UK spare capacity has shrunk
- sees firming of inflationary pressures
GBP still largely unfazed by a repeat of what we already know but a tad firmer.
