"We are walking a very tight line between tacking inflation and output effects of the real-income shock," Bailey said.
The BOE hawk Catherine Mann earlier highlighted this same issue. They're worried about flagging demand due to fuel prices eating up disposable income. The IMF this week forecast just 1.4% GDP growth in the UK next year.
There's a lagged effect of rate hikes and the BOE doesn't want to hit the brakes too hard as the economy slows next year.
Along those same lines, he said that he's nervous about providing forward guidance.
