- UK CPI is going through a “one off level shift”
- UK price situation is different to eurozone
- Sees modest, limited, gradual rate rises over the course of the next 3 years
- Expects wages to continue rising but wants to see evidence of that
- Will take appropriate steps to get inflation back to target in 2 years
And I’m in full agreement with him. We wore higher inflation due to non domestic price moves for over 4 years and it didn’t do us any harm in the main. Now we’re on the right side of it so it’s all good. What you would hope governments do is lock in some of this goodness for when it turns the other way. I think I might be pissing into the wind with that wish though
He’s also putting himself out there with timescales and that’s got him in trouble before, although this quote is wide enough to drive a bus through.
He was also asked about the SNB move and whether he had been informed prior to the move and with a wry smile said;
“I am in the mutual admiration society of central bankers,”
The details are from a NY Times piece while he’s over in Davos