- We're trying to ensure there's an element of flexibility given the uncertainties we face
- We need flexibility either to go further, or to stay where we are
- The pace at which we go further can vary according to circumstances
- Rejects criticism that BOE had been behind the curve in stopping inflation surge
- Investors should not assume September would also be a 50 bps rate hike
This was already communicated by Bailey in his press conference yesterday but Pill is providing a bit more colour to it. That said, the statement in itself was already rather clear after the BOE took a page out of the RBA's playbook in saying that "policy is not on a pre-set path". We're into the second-half of the central bank tightening cycle now i.e. where the early aggression and frontloading is being dialed back as economic conditions worsen. For central banks, it is about trying to navigate a 'soft landing'.