Remarks by BOE policymaker, Ben Broadbent, on inflation
- The extent of the rise in inflation has been surprising
- Have to pay very close attention, parsing official data as best as it can
- That includes numbers in the labour market
- Not convinced that current inflation in retail good prices should mean higher inflation in 18-24 months ahead
- That is the horizon more relevant for monetary policy
Broadbent's views here certainly strikes a contrast to what we heard from Saunders last week here. If anything, he is advocating that the best response to the latest set of economic developments is to maintain the status quo - at least in terms of rates.
